Could the Dell(s dell) nightmare be over? Several reports here and here say it could be so, with the Dell special committee weighing an offer to take the company private, nearing a compromise with Michael Dell and Silver Lake Partners, which are backing that offer.
A few weeks ago, the Dell-Silver Lake group posed a 10-cent-a-share “sweetener” taking the offer to $10.35 a share provided the committee change the rules of the vote to count only actual votes. The current rules state that abstaining votes be counted against the Dell-Silver Lake deal. And, they’re allegedly offering a special dividend of 13 cents per share. The original offer made last February was for $10.25 per share or $24.4 billion
According to the New York Times’ Dealbook:
Under the likely terms of the new agreement, Michael S. Dell and his partner, the investment firm Silver Lake, would pay $13.75 a share. They would also pay a special dividend of 13 cents a share, while shareholders would still receive a regularly scheduled third-quarter dividend of 8 cents a share.
The better offer could make it easier for the committee to overcome resistance from Carl Icahn and some other investors who maintain this take-private move undervalues the company and it came just before a re-scheduled special committee meeting was to convene Friday. This vote, rescheduled once, could be pushed back again.
This story is updated here.