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back to article Big Mike shoots email to Dell staff: My backers and I are your best bet

Michael Dell has told employees at the struggling firm that he's "passionately committed" to getting his $24.9bn leveraged buyout deal through the shareholder vote and using R&D and acquisitions to become a more competitive firm. In an email to staff, also filed with the Securities and Exchange Commission, Big Mike said that the …

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Stand by...

" sacrificing short-term gains for long-term competitiveness and profitability. "

Icahn's next move is to have Mr. Dell committed. Obviously, to Icahn, this kind of talk is just incomprehensible gibberish!

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Michael Dell put it rather nicely:

...to endure the risks of the transformation and the likely near-term adverse effects on earnings,...

For Dell to have any sort of longevity as a corporation it has to undergo a transformation plan and that transformation plan will necessarily have "adverse effects." The sort of thing Wall Street doesn't like to see. So it would be better done as by a company not being publicly traded. It's also likely to be a High Risk venture. One that by the numbers only is likely to go bust and it's only the addition of experienced leaders who move it above a 33.3% chance of success.

Is Mike's offer a good deal? Hard to say. I'm reminded of the lines from Seven Samurai where the farmers offer a pittance for the high priced swordsman to defend their village. In the past he worked for larger sums that were a lot of money. But today that pittance is a lot of money so he will once again sell his sword for high price.

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