Dell’s $24 Billion Buyout Bids Receives Two Alternative Acquisition Proposals in ‘Go-Shop’ Process

Posted on Mar 25 2013 - 8:19pm by Editorial Staff

It seems to be finally knock-out week for Dell, the company for which we reported last week that the Blackstone group counteroffers to buy the company, Dell Special Committee of the Board today confirmed that the two alternative acquisition proposals have been submitted during the “go-shop” period provided for in the merger agreement between the company and entities owned by Michael Dell, Dell’s Founder, Chairman and Chief Executive Officer, and investment funds affiliated with Silver Lake Partners.

One of the proposals was submitted by Blackstone and other by Carl Icahn. The Blackstone group proposal entitled by saying that if it get approval, the shareholders could choose to receive at least $14.25 in cash, per share value, for all of the shares they own while in case, if they want to continuing backing the company, the shareholders would be able to receive shares values at a minimum of $14.25. The second proposal which was filled by Carl Icahn, would involve a $2 billion investment from Icahn, purchasing shares at a price of $15 per share, along with $7.4 billion from Dell, $5.218 billion a new debt and $1.712 billion in new factoring receivable facility.

No doubt on how interesting this all going to be happen. The Special Committee, consisting of four independent and disinterested directors while the committee also noted that Michal Dell has confirmed to the Committee that he is willing to explore in good faith the possibilities of working with third parties regarding alternative acquisition proposals. Alex Mandl, Chairman of the Special Committee, said, “We are gratified by the success of our go-shop process that has yielded two alternative proposals with the potential to create additional value for Dell shareholders. We intend to work diligently with all three potential acquirers to ensure the best possible outcome for Dell shareholders, whichever transaction that may be.”

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