T. Rowe Price Opposes The Dell Buyout

Posted Feb 12, 2013

Earlier this month, we wrote about how Dell would be going private as part of a $24 billion acquisition.  The buyers include Michael Dell, Silver Lake, and MSD Capital.  The investors are also getting a $2 billion loan from Microsoft.

Many shareholders are happy with the deal, but investment company T. Rowe Price is opposing the deal.  T. Rowe Price has a large amount of Dell stock and they believe that the proposed buyout does not “reflect the value of Dell.”

T. Rowe Price chief investment officer Brian Rogers said that they do not support the offer as put forward.  T. Rowe Price owns about 4.4% of Dell’s shares.  Southeastern Asset Management holds an 8.5% stake in Dell and they said that they are planning to vote against the deal in the current form as well.

In order to go private, Dell will need a majority of stakeholders to vote in favor of the leveraged buyout offer.

[Source: Forbes]