14 DAY TRIAL // Michael Dell is finally getting his wish of taking the company private and, thus, getting it out from under the thumb of so many different shareholders with different desires for it.
Which is to say, he has finally gotten shareholders to agree to the total company buyout plan he put forward all those months ago.
Well, that's not strictly true. The original plan went through some modifications, until the offered sum on the part of Michael Dell and private equity firm Silver Lake grew from $21 / €15.81 billion to $25 / €18.82 billion.
Although, ironically, it was not the bullheadedness of the shareholders that dragged this on so much, but a surprise counteroffer on the part of activist investor Carl Icahn and Southeastern Asset Management.
Icahn saw a good chance to effectively steal Michael Dell's firm right from under him, and for a while, it looked like he'd manage it.
After all, he and the others in his camp consistently kept their offer one notch above that of the corporation's founder.
Nevertheless, Michael Dell drove on and kept negotiating, until Icahn reached the conclusion that it was impossible to win.
Obviously, Michael Dell is thrilled with his success, especially after it was touch and go for a while there.
“This is a great outcome for our customers and our company,” Michael Dell said on a conference call.
“In taking Dell private we plan to go back to our roots, focusing on the entrepreneurial spirit that made Dell one of the fastest growing and most successful companies in history.”
The main reason Dell even moved for taking the company private was the lack of direction. Or rather, the impossibility of him taking the company in a direction that would once again move it up in ranks worldwide, marketing-wise, without having to satisfy the wishes of shareholders/members of the board.
Stockholders will receive $13.75-$13.88 / €10.36-€10.45 for each share of Dell common stock in their ownership. Once the buyout closes on November 1, Michael Dell will own 75% of the company.