Source says possible collapse of Dell's buyout seen unless voting standard changes

By IVCPOST Staff Reporter

Jul 31, 2013 12:09 PM EDT

A possible collapse looms on Michael Dell and Silver Lake's acquisition of Dell Inc., a source said. The person, who was familiar with the deal, told Reuters that unless Dell's special committee revised the voting standard, the deal is bound to go kaput. As Michael Dell, his private equity partner Silver Lake, and Dell's special committee are still deliberating privately on the matter, the person spoke on condition of anonymity.

Dell's buyout group already sweetened the deal to USD 13.75 per share, but on Wednesday the third largest PC maker in the world said it would not budge on its established voting standard. The committee, however, said that it is amenable to forwarding the vote's record date. The consortium said that merely changing the record date is not enough. The source told Reuters that since a lot of shareholders do not vote, they are counted as if they had given a "no" vote and would thus block the deal.

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