The Vote On The Dell Buyout Gets Delayed To July 24th
Dell’s shareholders have not voted today on a proposal to take the company private as part of a leveraged buyout arranged by CEO and founder Michael Dell. The meeting was adjourned without a vote taking place. A new vote will be scheduled in 6 days on Wednesday July 24th.
The delay is likely taking place to give Michael Dell and private equity firm Silver Lake time to change the mind of shareholders that represents at least 30% of shares outstanding that was going to vote against the deal. Michael Dell is not allowed to vote due to the go-shop process. This makes 43% the majority needed to approve or reject the proposal, according to AllThingsD.
This will also give time for Carl Icahn to boost his deal. Last week, Icahn added warrants to buy Dell shares over seven years. Michael Dell and Silver Lake are not raising their bid.
Below is the press release about the delay:
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.