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back to article 'Disturbed' Dell investors could tank private buyout

According to reports, Dell's largest independent shareholder, Southeastern Asset Management, is not keen on the $24.4bn buyout bid, and it's not the only one. Sources whispered to Reuters that Southeastern and other investors think the deal undervalues their shares at $13.65 each and were hoping for more like $20 a share. …

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Silver badge
FAIL

Shares in my company are worth £1,000,000 each (or so I think). Funny, I can't seem to find anyone willing to buy any.

So they were hoping for $20 each - yeah, well, you'll get what the market is willing to pay. That is the value of each share. If Southeastern think the shares are undervalued they should be buying more, not moaning that they aren't being offered enough for what they've got..

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Not exactly.

No one can force them to sell at any price. Even if the bid succeeds and M. Dell pulls the company off the exchange, they will still own whatever percentage they own now.

Can Dell acquire the majority he needs without the sale from these investors ?

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Pint

Re: Not exactly.

I think there's a point at which a majority shareholder can take the company off the market. Think that's what happened when the Glazers bought Manchester United. I have no idea what happens to any shares still floating around that don't get bought up. I suppose they might be worth their issue value or something, certainly less than the market price. Anyway, it's nearly beer o'clock!

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Re: Not exactly.

There is a point at which they are forced to sell if the majority shareholder wants to buy. I think it's pretty high though. Over 85% or something.

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Re: Not exactly.

"No one can force them to sell at any price."

Wrong, when they bought the shares they agreed that all descisions would be decided by majority vote. Now some descisions may need 50%+X% but once that leval has been reached, it's game over. So they can be forced to sell.

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kb
WTF?

But the thing is..

If you look at the figures dell really isn't doing badly, in fact they've already climbed back up to pre-recession levels even though the economy is still down. profits are up, sales are up, why should they sell for $13 a share when it looks like the company is doing better?

It isn't like the Yahoo deal where the moron blocked an offer that was higher than they could possibly get on the market and yahoo had been doing nothing but failing, no in this case dell is doing better which is probably why Michael wants to take it private.

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Bronze badge
FAIL

Shock asset stripper thinks his shares should be worth more!

The writing is on the wall for DELL and other computer builders... more and more people want tablets and smart phones... very view people actually need a laptop or desktop... by the time this asset stripper realises this, he'll be wishing he sold out for Dell's offer now

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Re: Shock asset stripper thinks his shares should be worth more!

Hmmm, there are still a lot of jobs you can't beat a desktop for. Tablets are alright for salesmen to wave under customers noses, but I reckon we'll still be using mouse and keyboard in offices for some time to come. Somebody has to write up sales reports and type in sales figures.That's where a firm like Dell can still make some money.

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JDX
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Re: Shock asset stripper thinks his shares should be worth more!

By 'very few' you mean the tiny majority who work in an office or attend school/university?

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Re: Shock asset stripper thinks his shares should be worth more!

Yes the market is not going to disappear right away but is definitely in the mature stage and now is considered more like an durable item appliance you replace far less often than you used to.

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Anonymous Coward

Re: Shock asset stripper thinks his shares should be worth more!

Nothing prevents Dell to produce tablets and smart phones too.

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kb
Facepalm

Re: Shock asset stripper thinks his shares should be worth more!

Riiight, and I can fly south for the winter by growing wings out my backside. quit believing the stupid press, okay?

Let me make this perfectly clear, this is from somebody who has been in the trenches selling and servicing Pcs since the days of Win 3.x so i know of which I speak, the reason PC sales are down? is because everybody and their dog has multiple PCs and they are ALL overpowered!

Look at what I was selling on the LOW end more than 5 years ago: Phenom I X3 with 4GB of RAM and a 400GB HDD, now how many folks gonna be able to max that out? and on mobile it was Core duos and Turion X2s with 2GB of RAM and 250Gb HDDs. again how many are doing tasks when they are mobile those chips won't handle?

Once the MHz bubble ended and the core wars began PCs quickly went from good enough to top fuel funny cars yet the jobs that people had for them didn't change. Even the gamers don't have to buy as often because at 100 million a pop its doubtful games are gonna get more graphically rich than they are now.

Mark my words ARM will be in the same boat in less than 2 years, already you have Nvidia at 5 cores, Samsung at 6, and I predict by next Xmas season you'll see multicore phones and tablets under $100. Since a good 85% of the population won't feel any difference between an ARM dual and a quad you'll see the sales level out as the stragglers get one and after that it'll start dropping, just as it did on PC.

Until someone invents a new language or framework that will let programmers use as many cores as a system has as trivially as writing a single threaded app is today you are gonna see that the tech levels off because the average user just doesn't need to upgrade when the system they have is overpowered.

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Dell

Except of course Dell is focussing heavily on the Data Centre market where it is eating HP's lunch.

Data Centres which are required for SmartPhones, Tablets et al to work in the way you expect...

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Re: Dell

Eating HP's lunch? REALLY??

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JDX
Gold badge

Surely this kind of news will hurt the share price and allow buying up of stock in a non-organised manner?

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Cue an entirely unconnected item of Dell-related "bad news" to tank the stock the requisite 7 dollars.

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Silver badge

Re: tank the stock the requisite 7 dollars.

If the stock were at the price that the raiders/strippers were demanding, there would not have been a plan to take Dell private in the first place. So there's no need to tank the stock. It's already been tanked by unrealistic Wall St. expectations.

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