The activist investor that owns 8.4% of Dell Inc, Southeastern Asset Management said that the evaluation of the US $24.4 offer with founder Michael Dell and private equity firm Silver Lake Partners is flawed.
Because of this observation, Southeastern sent a letter to the board of directors of Dell Co reiterating its stand on the proxy statement dated March 29 issued by the company. SAM maintains that there is no compelling case for shareholders to agree to the US $13.65 per share offer. It ended the letter by saying that the special committee failed to explore all options properly.
One of the highlights of the letter to the board is the lack of a proper explanation why not other buyout offers were entertained that had the proviso allowing shareholders to opt between being paid in cash or in shares. The firm urged the special committee to negotiate 'in good faith.'
Dell received two buyout proposals from Blackstone Group and investor Carl Icahn. Despite the option to accept superior offers, the company has recommended the acceptance of the leveraged buyout offer from Dell and Silver Lake.
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