Dell Committee Said to Seek at Least $14 a Share

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July 24 (Bloomberg) -- Bloomberg deals reporter Cristina Alesci reports that Dell’s special committee is said to seek at least $14 a share in a buyout offer from founder Michael Dell and Silver Lake Management. This comes after company founder Michael Dell and Silver Lake announced an increase to $13.75 earlier this morning, calling it their final offer. She speaks on Bloomberg Television's "Market Makers."

Of the special committee changing its rules and being open, if they present a higher price?

This is the special committee telling michael dell and silverlake that they need to at least bump their bid to $14 in order for the committee to consider the voting changes, the requirements that michael dell and silverlake are asking for.

It is a very significant price because that is the price that carl icahn is suggesting that he do a buyback for.

Carl icahn to bid is not only opposing a buyback but also leaves some shares outstanding.

That is what has been holding up or working against carl icahn, that portion of a company that will continue to be public we traded -- publicly traded.

His opponents say there is too much risk for shareholders if the company will continue to trade because of volatility and because of the fact that the company would have additional debt under carl icahn's proposal -- under michael dell for basel as well but the fact is under carl icahn you would have a publicly traded element to the deal.

Michael dell also wants the committee to change the way they count votes.

How is the committee responding on that front?

What is happening right now is michael dell and silverlake have come to this conclusion that 18% of the shareholders have abstained, which actually works against them.

If you don't vote, it counts as a no vote and that is a huge hurdle to getting this deal approved by shareholders.

What they are saying is we will give you more money, 10 extra cents and this offer, if you allow those abstentions not to work against this.

That is what they going for.

It shows how hard it is to get the shareholder approval they need.

It is usually no problem , so this is very unusual.

What will have an exit the them tonight, there will be a very brief shareholder meeting -- at 6 p.m. and likely another postponement.

If you read a statement that michael dell and silverlake put out, $13.75 is where their holding.

We could see that change.

Great reporting.

This text has been automatically generated. It may not be 100% accurate.


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