James Delahunty
8 Feb 2013 16:08
Dell's largest independent investor wants a higher offer.
Southeastern Asset Management is opposing the buyout of Dell Inc. by founder and CEO Michael Dell, and equity firm Silver Lake. Earlier this week, the Dell board settled on a deal of $13.65 a share for the company, which Michael Dell wants to take into private ownership.
In order for the buyout to get shareholder approval, it requires that a majority of shares held by investors other than Michael Dell must be in favor when a vote is taken.
With Southeastern's objections, shareholders accounting for 11 percent of shares (not held by Michael Dell) are now against the deal.
Southeastern says it values Dell at $24.00 per share, and said the deal is bad for shareholders as they could have made more from alternative scenarios. It gave an example of breaking up Dell Inc. and selling its units separately.
"Selling multiple business units to strategic buyers could easily exceed $13.65 per share," it said.