Dell secures shareholder approval for USD24.9 billion buyout - source
A Reuters report cited a a source that Michael Dell and Silver Lake Management LLC got enough shareholder votes for its proposed leveraged buyout of Dell Inc. Both parties are planning buy out Dell at a USD24.90 billion deal. The source, who asked not to be named as the results have not been made public, said Dell and Silver Lake received two-thirds of the voting share block. Once the buyout is a go, this would be the largest leveraged buyout of the world's third-largest personal-computer maker history since 2007.
The results of the shareholder vote meeting would be released on a September 12 meeting at the company's headquarters in Round Rock, Texas. Dell spokesman David Frink declined to provide comment. Investors like Franklin Mutual Advisers and BlackRock Inc. were expected to have voted for Dell's buyout by its founder and Silver Lake.
Michael Dell, who is also chariman and chief executive of the personal computer maker company, was adamant in privatization of the company in order to execute a turnover plan that requires no public disclosure.
Cross Research analyst Shannon Cross said, "Now we're going to have to just sit back and see whether Michael Dell succeeds with the company. It's going to be good for the industry that there is some certainty about how Dell is going to end up."