Dell Buyout Vote Delayed
No vote, no deal. More delay.
Dell shareholders didn’t vote today on a proposal to take the company private in a leveraged buyout. The meeting of shareholders at which the proposal was to be considered has been adjourned without the vote taking place; a new vote has been scheduled for next Wednesday, July 24.
The adjournment is, for all intents and purposes, a delaying tactic meant to buy time for Michael Dell and the private equity firm Silver Lake to try and change the minds of some shareholders representing at least 30 percent of shares outstanding, who were ready to vote against the deal. Under rules of the go-shop process, the CEO is not allowed to vote, making 43 percent the majority needed to approve or reject the proposal.
Meanwhile, pressure will begin again on all parties to raise their bids. Carl Icahn sweetened his pot last week with the addition of warrants to buy Dell shares over the course of seven years. Michael Dell and Silver Lake signaled many times — the last time was on July 16 — that they have no intention of raising their bid.
For more coverage, check out our liveblog of the shareholders’ meeting.
As the markets opened for trading in New York, Dell shares rose by 30 cents, more than two percent, to $13.17, or 48 cents below the buyout price of $13.65.
Here’s Dell’s announcement, which just crossed the wires:
Dell Special Meeting of Stockholders Adjourned Until July 24
Round Rock, Texas, July 18, 2013 — Dell Inc. announced that today’s Special Meeting of Stockholders was convened and adjourned to provide additional time to solicit proxies from Dell stockholders. No vote was taken on the proposed transaction prior to the adjournment.
The Special Meeting will reconvene on July 24, 2013 at 5 p.m. Central Daylight Time at the Dell Round Rock campus, Building No. 2, Houston-Dallas conference room, 501 Dell Way, Round Rock, Texas 78682. The record date for stockholders entitled to vote at the Special Meeting remains June 3, 2013.