Privatisation of Dell's proposal failed to get shareholder vote

According to foreign media reports, sources in Sunday revealed that if the privatization of Dell's proposal failed to win the company shareholder vote, Dell founder Michael Dell and private-equity firm Silver Lake in the breakup fee still failed to reach a consensus.

If a billionaire Icahn Carl Icahn's alternative option could be passed within a year, the source said, Silver Lake believes it will qualify for a 450 million dollar fee. However, the source said that Michael Dell and Dell's board of directors currently insist that Silver Lake can only obtain compensation for the costs associated with the privatization of Dell.

Dell was scheduled to vote in Thursday on a 24.4 billion-dollar privatisation proposal by Michael Dell and Silver Lake, which was then postponed until July 24. Mr Icahn and other Dell investors are hoping to get a higher purchase price. Mr Icahn had offered to buy back about 1.1 billion shares of Dell shares at $14 a share and pledged to redeem the remaining shares held by Dell shareholders after Dell's share price exceeded $20 per share. According to Icahn's plan, Dell will remain a publicly traded company.

The source said Silver Lake was able to get a 450 million-dollar break-up fee only if Dell sold at a higher price, and Icahn's proposal did not represent a better purchase price. Silver Lake will also qualify for a break-up fee if Dell's board changes its recommendation, according to a merger and Acquisition agency statement submitted to the US Securities and Exchange Commission on March 29.

To date, Dell spokesman David Frink David Frink and a Silver Lake spokeswoman have not been able to put the report.

This year, Dell's share price has risen by 30%. The company's shares were closed at $13.14 in regular trading on the Nasdaq stock Exchange in Friday.

Long-term relationship

Michael Dell and Silver Lake disagree, reflecting the Durban between Michael Dell and Silver Lake Executive partner Igen Durban (Egon) is increasing. The two were neighbors of Hawaii and were known in Houston as early as their teens. When he founded Silver Lake in 1999, Michael Dell was one of the company's early investors.

The source said that when the media reported earlier this month that institutional shareholders investors, a shareholder consultancy, might oppose the privatisation of Dell's deal, Michael Dell should contact Durban, as requested by the special Board of Trustees, Discuss the question of whether to raise the bid. However, Michael Dell could not easily contact Durban. It is reported that Michael Dell and Durban later on this matter has been discussed, and ruled out the possibility of increasing the offer.

If Michael Dell's deal with Silver Lake is privatized, they will transform the PC company, which has been in existence for 29 years, into a software based enterprise service provider.

Shareholder vote

The privatisation proposal of Michael Dell and Silver Lake must be approved by most shareholders except Michael Dell himself. Michael Dell currently holds a 15.6% per cent stake in the company. In the absence of a vote, it would be considered a negative vote. As of July 18, Michael Dell did not get 42% shareholders, the support of the bottom line shareholder who needed to get the privatisation deal passed.

To implement Icahn's plan, Dell shareholders must first vote against the privatisation of Michael Dell and Silver Lake and then let the company's board be controlled by the proxy scramble.

Blackstone Group, Vanguard and State Street Corp. said at the weekend that they would support the privatisation of Michael Dell and Silver Lake, according to sources. Blackstone Group has previously objected to the deal. The fund will, like other Dell shareholders, be able to change its plans at any time before the vote of July 24.