Michael Dell Defends His Leveraged Buyout Offer
Michael S. Dell on Friday defended his $24.4 billion bid to buy control of Dell Inc., arguing that an alternative proposal by Carl C. Icahn would severely weaken the computer company.
In a presentation to investors disclosed on Friday, Mr. Dell reiterated his argument that taking Dell private would give the computer maker cover to increase its enterprise software and services business. Keeping the company public while adding on more debt, as Mr. Icahn has demanded, would only hurt that effort.
Michael Dell urges shareholders to support his buyout bid
Dell argued his case in a presentation filed with the U.S. Securities and Exchange Commission on Friday, saying that keeping any part of the company public while it transformed itself would hurt Dell’s stock price.
That in turn would threaten customer perception and make it more difficult to keep employees, he said.
Michael Dell says buyback ‘bit of rebirth, exciting’
Terming buyback of Dell, the world’s third largest PC maker, as a a bit of rebirth for it and exciting, founder and CEO Michael Dell believes the proposed move is in the long-term interest of the company.
“It is a bit like a rebirth of the company and so in that sense, it’s very exciting,” he said here on his proposal to buyback the company, Dell that he founded as a student.
Shareholders are slated to vote on July 18 on the USD 24.4 billion buy-back offer of Michael Dell and private equity firm Silver Lake to go private. But reports suggest that there are, however, stiff opposition, with counter offer.