What's Next in the Battle for Dell?

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July 12 (Bloomberg) -- Clinton Group President Greg Taxin discusses what's next for Dell with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

What do you make of this battle over dell?

Which way do you think it will go?

I think the dell and silverlake proposal will ultimately be approved by shareholders.

As proxy advisory firms indicated this week, the icahn proposal to stay can and do so in the face of management and michael dell telling you that the road ahead is going to be rough , and i think people are going to take the quick money and go rather than a longer-term bet that carl icahn and the new management team they have never met and don't know who would be there are going to be able to fix what sound like daunting problems with the direction of dell.

It seems like the higher offer usually wins here, and icahn's offer probably is that.

It depends on how one does the math.

There is certainty with $13.65 from silverlake and for michael dell.

What you get from icahn is a wait for an annual meeting where you hope to replace the entire board followed by a financing transaction, followed by an option or a warrant that you have got to hope gets in the money over time.

There are a number of assumptions built in there, and uncertainty in the market for dell's products in the interim.

It may be a nominal higher dollar amount but on a risk- adjusted basis, $13.65 is pretty good.

Is there a legal precedent for bird in the hand beats to in the bush -- two in the bush?

Shareholders are certainly mindful of taking risk in the face of an opportunity to take cash and go.

Management buyouts are always difficult for shareholders.

One of two things almost always happens.

The ceo knows a lot more about the business and is right to be bullish about it and is willing to put his own capital on the line and buys it at a bargain from shareholders . those are the ones we worry about.

That is what carl icahn is worried about.

The other scenario is that the founder ceo is overly enthusiastic -- and cannot let go.

And believes it has a future when no one else does.

We have seen that ,too.

That maybe this case.

We're seeing something else of interest here.

A change in ftc rules about the way that firms can sell stock in their companies to credited investors.

Out here, people are talking about, this is great.

Entrepreneurs can raise money.

How are you looking at this?

I'm in the investment management business.

On the impact of this rule change for hedge funds and private equity firms, though the rule changed as it affects those entities is quite similar to the way it will affect other someone to raise money either into a fund or a company -- for 80 years we've had this strange rule.

It does not extend the first amendment to people running private equity firms and hedge funds.

You're not allowed to talk about your business, to go out and solicit interest in investing in that business.

It has really handicapped the ability of entrepreneurs to raise capital and the ability for hedge funds, venture capitalists and private equity firms to be transparent about their business and seek new capital.

I think this rule change is great and it brings a first amendment finally into this world.

We will see some big changes because of it.

I'm surprised by that, but i've always appreciated your opinion.

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


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