Dell investors may use courts to boost buyout share price
Adam Berry/Bloomberg
Some major Dell Inc. shareholders who did not vote in favor of the computer company's buyout plan may seek a court ruling that could bump up the share buyout price.
A group of Dell Inc.[3] shareholders are considering seeking a higher payout in court than what company founder Michael Dell[4] and his partners offered in the deal to take the computer maker private.
Bloomberg reports that the stockholders control a combined 47.5 million shares. The shareholders have filed papers in Delaware - where Dell was incorporated - seeking a valuation ruling through the Delaware Chancery Court[5].
The biggest shareholder involved is Baltimore-based T. Rowe Price Group Inc.[6] (Nasdaq: TROW), which has 30 million shares tied up in the deal.
The stakeholders who control the 47.5 million shares - just under 3 percent of Dell's outstanding float at the time - withheld those shares from voting for the $24.9 billion buyout of the Round Rock-based company, led by Michael Dell[7] and private equity firm Silver Lake Management[8] LLC. The buyout was finalized on Oct. 30[9].
The process through the Delaware court is known as demanding appraisal rights. The shareholders have 60 days after a buyout is finalized to accept the share price offered by Dell-Silver Lake, which was $13.75.
A Dell spokesman told Bloomberg the company was aware of the move by the shareholders.
Separately, in the wake of the Dell buyout, two members of the company's senior management team have moved on to new jobs[10].
Greg Barr is managing editor of Austin Business Journal, responsible for day-to-day digital and print coverage.
References
- ^ Greg Barr (feeds.bizjournals.com)
- ^ This email address is being protected from spambots. You need JavaScript enabled to view it. (feeds.bizjournals.com)
- ^ Dell Inc. (www.bizjournals.com)
- ^ Michael Dell (feeds.bizjournals.com)
- ^ seeking a valuation ruling through the Delaware Chancery Court (www.bloomberg.com)
- ^ T. Rowe Price Group Inc. (www.bizjournals.com)
- ^ Michael Dell (feeds.bizjournals.com)
- ^ Silver Lake Management (www.bizjournals.com)
- ^ finalized on Oct. 30 (www.bizjournals.com)
- ^ have moved on to new jobs (www.bizjournals.com)