Wednesday, 3 July 2013

Investors press Dell on 'Plan B' as buyout bid totters

NEW YORK (Reuters) - Some Dell Inc shareholders said on Wednesday they are pressuring the board to come up with a contingency plan should a proposed $24.4 billion buyout of the No. 3 PC maker fall through in the face of investor opposition.

Several large Dell shareholders, who collectively own more than 5 percent of the company, told Reuters on Wednesday that they believed the $13.65 per share bid by founder Michael Dell and private equity firm Silver Lake Partners to take Dell private would fail unless the terms were improved.

They said they told the board that the bidders would need to increase the price or offer shareholders a chance to continue to own a piece of the company for them to approve the deal. Failing that, the investors said, they want the board to come up with a 'Plan B' for Dell.

A Dell spokesman declined to comment. Representatives of Michael Dell and Silver Lake also declined to comment.

(Reporting by Soyoung Kim, Jessica Toonkel and Nadia Damouni in New York; Editing by Diane Craft)