14 DAY TRIAL // As if it weren't bad enough that Dell was facing years of litigation over the private deal initiated by its founder, Michael Dell might completely lose control of the situation now.
Reuters often provides the world with very interesting information, in addition to official statements and such, but now it is acting as the bearer of bad news.
The news is bad not for consumers, although some may feel uneasy over the latest happenings.
Instead, the it is bad for Michael Dell, the founder of Dell and the man who has been trying to convince everyone with a stake in his company that the best idea is to make it private.
Over the past few months, he has been negotiating with shareholders and banks for the financing of a buyout.
There were some hiccups, but until yesterday, it was assumed he would pull it off, thus opening avenues for more focused R&D, and less need to bow down to the wishes of shareholders.
Now, though, a rogue element has appeared, or rather two rogue elements: Blackstone Group and billionaire activist investor Carl Icahn.
Blackstone Group submitted a preliminary offer prior to Saturday's expiration, under the terms of the "go shop" clause in the agreement. The "go shop" clause allowed Dell to seek other suitors.
Carl Icahn made the second offer. Seeing how he purchased a large block of shares just weeks ago, this really should not have been as large a surprise as it was.
That Icahn demanded Dell to pay $15.7 billion / 12.05 billion Euro in special dividends above the buyout price was another clue.
Now Blackstone Group is offering between $13.65 / 10.41 Euro and $15 / 11.51 Euro per share in a deal that will invite shareholder participation. GE Capital, amongst others, has been invited to assist in financing the deal.