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Dell gets shareholder backing for private plans

Simon Quicke

Michael Dell has succeeded in getting shareholder support for his plans to take the vendor into private hands after a majority voted in favour of the $24.9bn bid he put together with partner Silver Lake.

The moves to take the firm private will now happen before Dell's third quarter closes next month with shareholders getting $13.75 a share in cash and a $0.08 share dividend for Q3.

After a couple of postponements shareholders finally got the chance to cast their votes this morning at Dell's home in Austin, Texas, and despite a few public criticisms about the plans of the firm's founder the preliminary results indicated that the opposition had been overcome.

The result of the vote had become a formality after the main rival to Michael Dell's plans to take the firm private, billionaire investor Carl Icahn, pulled out of the race for control of the vendor earlier this week.

After that revelation market watchers started to do the maths and found that there was going to be enough support for the Dell going private plans, even with continued disapproval from Icahn from the sidelines.

Michael Dell has argued over the last months that the company needs to move away from being reliant on hardware and become more of a services specialist and maintained that going through that transformation was always going to be easier if it was done away from the gaze of investors.

 


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