Shareholders May Still Earn from Buyout Offer Says Barron's

By

According to Barron's last Sunday, profits can still be made by Dell shareholders even despite Blackstone Group LP's pull out of its bid for the third largest personal computer maker in the world a little over a week ago.

The withdrawal of the bid caused Dell shares to decline to its lowest in two months. It also put the takeover bidding into a one on one dogfight between Carl Icahn and Michael Dell-Silver Lake Partners.

The reason for the pulled bid was the forecasted declning demand for PCs. This resulted in Dell's share value to fall to US$13.35 per share, which is below the US$13.65 per share buyout bid by Dell and Silver Lake.

Southeastern Asset Management, together with Icahn have criticized the buyout bid for being too low. Southeastern Asset Management is the largest independent shareholder in Dell while Icahn is steadily increasing his shareholdings in the firm to increase his voting capacity.

The whole deal still is facing an uphill climb, especially from investors who are weary of all the infighting.

Tags
Dell, Michael Dell, Silver Lake, Carl Icahn

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

Join the Conversation

Real Time Analytics