Postpone vote or raise share prices? Dell Inc still hesitates at decision

By

Dell Inc.'s US $24.4 billion buyout continues to drag on as its founder is not budging from the US $13.65 per share offer which shareholders consider as too low.

Analysts say that Dell and Silver Lake Management, a private equity firm, will simply have to increase the share bid to US $14 as a way out of the deadlock. The sticky situation, however, can only get worse as the stock will continually drop when there's no solution in sight.

Angelo Zino, an analyst at Standard & Poor's Financial Services in New York, said that Dell shareholders are looking at two scenarios: first is that stocks will fall and second is the board of directors might postpone the vote deadline by adjourning the meeting.

The postponement would mean that billionaire investor Carl Ichan, who offered to buy Dell shares at US $14, will have to wait some more. The offer is even more attractive because of the warrant that can be swapped for additional stock if Dell share prices reach more than US $20.

Tags
Buyout, Dell, Shareholders

© 2024 VCPOST.com All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics