Michael Dell and equity firm Silver Lake have announced a last-minute revised offer to take Dell private, adding $350m to the deal by offering a one-off $0.13 share dividend on top of the $13.75 per share that was offered last week.
A third-quarter dividend of $0.08 will also be paid to investors, regardless of when the deal to take the company private is completed. This will add another $120m to the deal. In total the new offers add $470 million to the deal for the company over time, taking the total offer to just shy of $25bn.
The founder of the company, Dell has been at loggerheads with majority investor Carl Icahn over the value of the deal, with the latter arguing it undervalues the company. He was unimpressed with the most recent offer too.
The Special Committee of the Board of Dell has said it backs the revised offer for the additional value it offers to shareholders.
“The Committee is pleased to have negotiated this transaction, which provides as much as $470m of increased value, including the next quarterly dividend that will now be paid regardless of when the transaction closes,” it said.
The Committee now intends to hold a meeting on 12 September for eligible shareholders to vote on the transaction offer. Whether Icahn and other rebelling shareholders allow it to reach this stage will be another matter.
The plans to take Dell private have been rumbling on since February when it was first officially announced. Microsoft is adding its weight to the plan, stumping up $2bn for the bid, as the PC maker looks to remove itself from the pressure of shareholders and public balance sheets.
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