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.
When Ken Duberstein’s secretary told him Michael Dell was on the phone on the afternoon of July 31, there was little doubt about the topic. That morning, Dell Inc.’s special board committee had rejected the latest offer from Dell to take the personal-computer company private, a battle that was dragging into its 11th month.
Dell Inc. said Chief Executive Officer Michael Dell and Silver Lake Management LLC have completed their $24.9 billion leveraged buyout after pushing for most of this year to take the computer maker private.
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 took his company public in 1988, the personal-computer maker’s biggest competitors were International Business Machines Corp., Compaq Computer Corp. and Gateway 2000. The headstrong founder was later quoted joking that his daughter’s first words were to “kill IBM” and his other rivals.
Dell Inc. Chief Executive Officer Michael Dell won shareholder approval for a planned $24.9 billion buyout, capping a seven-month standoff with investors and gaining free rein to attempt a turnaround of the struggling personal-computer maker outside the glare of public markets.