08 February 2013

AUSTIN / TECHNOLOGY: Big Dell LBO Roadblock Appears: Southeastern Fund Says Price Too Low.

     Angry Dell stockholders are starting to gather to oppose a proposed $24.4 billion LBO.
     At least one has filed suit over conflict of interest.
     Now...Southeastern Asset which holds 8.5% of Dell stock...says the $13.65 price...is just too low.
    The largest Dell stockholder...after CEO Michael Dell...values the company at $24.
    At that price...Dell would be worth $42 billion...not $24.4 bn.
    The Memphis fund offered other alternatives to satisfy stockholders...including breaking-up the company...and selling off the pieces.