T. Rowe Price Group Inc. and more than 100 other Dell Inc. shareholders who control a combined 47.5 million shares spurned the company’s buyout offer to seek a potentially higher payout through the Delaware court system.
Dell Inc. directors’ move to change shareholder voting rules for founder Michael Dell’s buyout bid worth as much as $24.9 billion has tainted the deal, investors challenging the offer said in court filings.
Dell Inc., the computer maker that founder Michael Dell and Silver Lake Management LLC are taking private for $24.9 billion, is working with AlixPartners LLP on its turnaround, according to people with knowledge of the matter.
Dell Inc. responded to its biggest outside shareholder by arguing that its leveraged buyout deal offers shareholders “an attractive and immediate premium,” after Southeastern Asset Management Inc. said the proposal undervalued the personal-computer maker.
Michael Dell set up a family office in 1998 that diversified his wealth beyond stock in the computer maker he had started 14 years earlier. Now, as he seeks to take Dell Inc. private, the same investment firm may provide pivotal financing for what would be the largest buyout since 2007.
Carl Icahn walked away from his effort to win a higher price for an 8.9 percent stake in Dell Inc. less than a month after stating that the $24.9 billion buyout “greatly undervalues” the computer maker.
When Michael Dell announced a plan in February to take Dell Inc. private, today was supposed to be anticlimactic -- the day when shareholders would easily bless the buyout of the computer maker he founded 29 years ago.