Why did Dell refuse

Dell's Supervisory Board rejects Michael Dell's bid increase for the time being

A special commission of the Dell supervisory board has rejected the bid of CEO Michael Dell and Silver Lake Partners, which was recently improved to $ 13.75 per share. Literally it was said that one could "not yet" accept it. The vote planned for tomorrow on their earlier offer of $ 13.65 per share can go ahead as planned.

A reason for the rejection was not given. Michael Dell had linked the increase with the condition that votes that were not exercised should not be regarded as votes against, as originally intended. This earned him the ridicule of the investor Carl Icahn, who submitted a competing bid for Dell - after all, it was Michael Dell himself who worked out the procedural modalities.

The committee, which has to review all offers on behalf of the supervisory board, sent Michael Dell and Silver Lake the rejection by letter. One is “not ready to accept the commandment”, it says - with a request for an answer. It shouldn't be long in coming.

Michael Dell would like to take the company he founded off the stock exchange by buying back shares. Icahn, currently the second largest shareholder, considers it to be significantly undervalued at a price of $ 13.65. Since Icahn was able to prove his funding, the majority of shareholders seem to prefer this bid. This is probably the reason why the Michael Dell-inclined supervisory board has already postponed the vote on the offers twice.

Michael Dell has offered to remain as CEO in the event of failure. However, he is not available for a debt-financed renovation as Icahn is aiming for. Icahn, on the other hand, recently wrote: "It is time for Michael Dell and the board of directors to resign."

[with material from Don Reisinger, News.com]

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