Dell looks to calm shareholder concern over buyout
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Slumping personal computer maker Dell announced Tuesday that it is bowing out of the stock market in a $24.4 billion buyout that represents the largest deal of its kind since the Great Recession dried up the financing for such risky maneuvers. associated press/August 2012 |
NEW YORK — Dell is trying to reassure shareholders about its proposed $24.4 billion acquisition by a group led by its founder, saying it considered a number of strategic options before agreeing to the deal.
Dell Inc. laid out the advantages of the transaction in a regulatory filing Monday, three days after a major shareholder ridiculed the buyout as a rotten deal that undervalues the business.
The company said the deal "shifts the risks facing the business to the buyer group" and allows time for alternate bids. Dell says shareholders will see if there are superior options available.
The computer company says that it determined with independent advisers that the cash bid by a group led by founder and CEO Michael Dell was in the best interests of stockholders.
Dell shares edged up 2 cents to $13.65 in premarket trading.
