Round Rock, TX, United States (4E) – Shareholders of Dell Inc. approved the $25bn buyout offer of founder and CEO Michael Dell and investment firm Silver Lake Partners, ending a seven-month standoff with investors to take the third-largest PC maker private.
Under the deal, Dell stockholders will get $13.75 in cash for each Dell share, as well as a 13 cent per share special cash dividend, for a total cash payment of $13.88 per share. The transaction also includes a guaranteed regular quarterly dividend of 8 cents per share for the fiscal third quarter.
Mr. Dell’s victory was announced during Thursday’s shareholders’ meeting at the company’s headquarters in Round Rock, Texas. This decision ends the bitter battle for control for the company between the buyout group and investors led by Carl Icahn and private-equity firm Southeastern Asset Management Inc.
Both sides have disagreed over the price and the deal was nearly defeated. After the buyout offer was announced in February, Mr. Dell has raised the offer twice. The takeover is the largest leveraged buyout since the 2007 takeover of Hilton Worldwide Inc. by Blackstone Group LP.
Earlier this week, Mr. Icahn gave up his bid to convince other shareholders to reject the deal and back his proposal instead. In August, Dell reported a 72 percent drop in fiscal second-quarter earnings due to flat revenue and higher operating expenses.