Dell Buyout Will Not Push Through

July 6
8:20 AM 2013

The deal to buyout Dell Inc. would not push through. According to people who had direct knowledge of the deal, Silver Lake Management LLC and Michael Dell would not be closing a buyout deal for the offer of US$24.4 billion.

The February offer of US$13.65 per share represented a significant and fair premium if the deal fell apart. Now, Dell and Silver Lake are going for an increase, said an unnamed source. The company's stocks closed at US$13.03, representing a 2.1% drop, on Friday in New York.

This commotion over Dell was set to end in a shareholder vote come July 18. Institutional Shareholder Services Inc. was not for the proposal of Dell's CEO, according to the unnamed source.

On the other hand, Carl Icahn said that he had obtained debt financing worth of US$5.2 billion. This would be the billionaire's third and last attempt at stopping the leveraged buyout.

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