Could the 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.