Dell Responds to Inquiries About Fairness of Proposed LBO; Declares It Awesome


“Upon further reflection, we were right the first time.”

Dell Inc. (Dell) responded to inquiries and criticism relating to its proposed going private deal with Silver Lake Partners, Michael Dell, Bank of America, Barclays, Credit Suisse, RBC, and Microsoft participating.

Critics, including real critics with actual money on the line, like its largest outside shareholder, Southeastern Asset Management, Inc. (SAMI), contend that the proposed LBO significantly undervalues the company.  Other critics have chimed in as well, including Pzena Investment Management and Yachtman Funds.

Dell thought about it.  Deliberated.  Considered.  Pondered.  Navel-gazed.  And said:

  • The Special Committee of Dell’s Board considered lots of strategic alternatives.
  • They hired expensive people to think about it too.
  • They concluded that the proposed transaction is in the best interests of stockholders, with upfront cash and no more risk, which will valiantly be borne by the buyer group.
  • If someone has a better offer, they are free to offer it.  Go ahead.  They dare you.
Since it went over so well in the last post . . .

Dell Response to Inquiries About LBO

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One Response to Dell Responds to Inquiries About Fairness of Proposed LBO; Declares It Awesome

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