By Nathalie Tadena
Dell Inc. (DELL) moved to reassure employees about the computer
maker's planned $24.4 billion leveraged buyout by founder Michael
Dell, telling them in an internal note that uncertainty and
speculation related to the deal "is all part of the process being
led by our board of directors."
"As expected, this proposed transaction has generated
significant interest and commentary from media, investors and other
stakeholders," Dell wrote in note sent to employees Friday. "There
will continue to be speculation, conjecture and uncertainty as the
process moves forward."
In its letter, which was disclosed in a Securities and Exchange
Commission filing, Dell asked employees to keep developments in
proper perspective and went on to outline details about the
plan.
Dell noted the special committee is currently managing a 45-day
so-called "go-shop" period, during which it will actively solicit
and evaluate alternative proposals. The "go-shop" period ends on
March 22 and the committee will be able to continue discussions
with parties that submitted a qualifying proposal during that
period.
The deal is expected to close before the end of the second
quarter, subject to shareholder approval. The transaction must be
approved by the holders of a majority of Dell's shares, excluding
shares held by Mr. Dell and certain members of the company's
management and board.
Dell also noted its fiscal 2014 business plan remains unchanged
and said it remains "committed to completing this transaction as
seamlessly as possible."
Over the past few weeks, several Dell shareholders have opposed
Mr. Dell's offer. Southeastern Asset Management Inc., Dell's
largest outside shareholder, criticized the buyout at the current
price and hired a firm to convince other shareholders to oppose the
deal.
On Thursday, activist investor Carl Icahn said he would replace
Dell's board and pursue "years of litigation" if the company
refused to accept his demand for a refinancing that would pay a
hefty dividend to shareholders. Prodding the company to reject the
buyout offer that it agreed to last month and endorse his
alternative, Mr. Icahn also disclosed he owns a "substantial" stake
in Dell.
Dell shares were up by four cents to $14.20 after hours. The
stock has jumped 40% since the start of the year.
-Write to Nathalie Tadena at nathalie.tadena@dowjones.com
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