... But Dell Computer's Founders

Another high-profile stock offering hasn't gone nearly as well. On Feb. 24, Dell Computer withdrew its long-planned secondary offering of 4 million shares of common stock, citing unfavorable market conditions. The company also said that it expects overall net margins to drop from historical levels of around 5% to about 4% for its current fiscal year. Immediately after the announcement, Goldman Sachs, the lead underwriter for the offering, dropped its "buy" rating on Dell, and the stock plunged 17%, to 30 1/8.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.