By Ben Fox Rubin
Dell Inc. (DELL) said its stockholders approved its $25 billion
buyout by founder and Chief Executive Michael Dell and investment
firm Silver Lake Partners, ending a bitter contest to take the
PC-maker private.
"I am pleased with this outcome and am energized to continue
building Dell into the industry's leading provider of scalable,
end-to-end technology solutions," Mr. Dell said. "As a private
enterprise, with a strong private-equity partner, we'll serve our
customers with a single-minded purpose and drive the innovations
that will help them achieve their goals."
The company hasn't disclosed the breakdown of the vote
tally.
Dell stockholders will receive $13.75 in cash for each share of
Dell they hold, plus payment of a special cash dividend of 13 cents
a share, for total consideration of $13.88 a share in cash. The
agreement also guarantees the regular quarterly dividend of eight
cents a share for the fiscal third quarter.
The shareholder vote was repeatedly delayed as activist investor
Carl Icahn and his partner, Southeastern Asset Management Inc.,
agitated for a better deal.
Earlier this week, while still criticizing the deal and Dell's
board, Mr. Icahn conceded defeat after six months of trying to
persuade other shareholders to vote down the deal and instead
support his proposal for a so-called leverage recapitalization of
the computer maker.
Dell, once the world's largest personal-computer maker, has
largely been sidelined as tablets and smartphones became the more
popular devices and PC sales shrank. In recent years, the company
has looked to move beyond its core PC business and expand into more
lucrative and high-margin businesses. To offset the slumping PC
business, Dell has been on an acquisition binge, adding a variety
of software, storage and networking tools.
Last month, Dell reported its fiscal second-quarter earnings
declined 72% as it recorded flat revenue and an increase in
operating expenses. The quarter marked Dell's seventh period of
year-over-year profit declines amid an industrywide slump in
personal-computer sales as tablets and smartphones become more
popular devices. However, results beat Wall Street
expectations.
Shares were flat at $13.85.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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