Michael Dell Ups Takeover Bid - But Vote Postponed Again

Written by Computer Daily News     26/07/2013 | 09:16 | Category: INDUSTRY

DALLAS - At the 11th hour, Dell founder Michael Dell raised his US$24.4 billion bid for the company's shares - though by less than 1 percent - as he seeks to take the company he created private with himself in supreme control.

Michael Dell Ups Takeover Bid - But Vote Postponed Again

He is now pressing the board to change how it counts shareholder votes to improve the odds of his buyout winning approval.

The vote on the buyout was postponed for a second time to next Friday, to give Michael Dell backers time to rally the shareholders. The first vote had been slated for July 18 but was postponed as Michael Dell realised he was likely to lose.

A special board committee yesterday was reviewing the CEO's slightly sweetened $13.75 offer - and a requirement that a majority of votes cast be enough to seal the deal, an easier threshold to meet.

But the committee wants at least $14 a share to even consider that change in voting terms, one source told the Wall Street Journal. And Silver Lake, which is backing Michael Dell's now roughly $24.6 billion bid, will not back an increase to $14, according to the Wall Street Journal.