Dell Buyout Group Said Not to Be Pursuing More FinancingSerena Saitto
The buyout group led by Michael Dell isn’t seeking to sweeten its $24.4 billion offer for Dell Inc. with more financing from Microsoft Corp. or the banks that secured debt for the deal, people with knowledge of the situation said.
Dell’s board postponed until July 24 the shareholder meeting originally set for today to give shareholders more time to weigh in on the sale to Chief Executive Officer Michael Dell and Silver Lake Management LLC.
The delay prolongs months of jousting between the buyout group and investors seeking a higher price, while giving Dell and Silver Lake more time to win over shareholders who have balked at their $13.65-a-share proposal, saying it undervalues the computer maker.
Representatives for Michael Dell and Silver Lake declined to comment, as did a spokesman for Microsoft.
Michael Dell, 48, isn’t prepared to get the deal done at any cost and is maintaining a rational and unemotional approach to the situation, said a person familiar with his thinking.
Dell is the 57th-richest person in the world, with a net worth of $14.7 billion, according to the Bloomberg Billionaires Index. While he could conceivably use his personal fortune to increase the current offer, he’s already pledged some of his own money during this process and has calculated that even without raising the bid, he can keep control of the company he founded in the long run, said the person.
The shareholder vote will be held next week at the company’s Round Rock, Texas-based headquarters.
Dell shares rose 2.1 percent to $13.15 as of 2:22 p.m. in New York. The proposal Dell and Silver Lake put to a shareholder vote represents a premium of 25 percent over the computer maker’s closing share price of $10.88 on Jan. 11, the last trading day before news of a deal surfaced.