Dell Inc.'s special comittee of its board is thinking about postponing the shareholder's vote regarding the buyout by founder Michael Dell. The said delay is to seek a better bid or time to earn support for the US $24.4 billion transaction according to a Bloomberg report.
A person knowledgeable about the transaction claimed that the committee is considering postponing for about a week but will wait until the morning of July 18 to make the decision.
Suspending the vote would permit buyers Dell and Silver Lake Management LLC to increase the offer or assert the existing bid of US $13.65 per share as best and final, according to the source who requested anonymity. Similarly, the shareholders, who are allowed to recast their votes until the last minute, are given the opportunity to change their decision.
This development can assist Dell in winning over shareholders in its battle with billionaire investor Carl Icahn, who has advocated for several months for the founder to increase his bid. BlackRock Inc and T. Rowe Price Group Inc, which respectively holds 4.4% and 4.1% stake, has expressed their opposition to the buyout.
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