Dell on Friday warned that this will be dangerous, to take a lot of debt, and maintain a public company, its earnings outlook deteriorates, in a sign that it thinks from blackstone and billionaire investor Carl Icahn (Carl Icahn) is full of risks.
3 of the personal computer maker, has published a book, 274 pages of preliminary proxy statement, told Dell shareholders how $24.4 billion proposal, founder and chief executive Michael Dell (Dell) and private equity firm Silver Lake Partners together, and why it is the best substitute for the company's board of directors had discussed.
Icahn had offered $15 a share of 58%, dell, and blackstone group, says it can pay more than $14.25 a share - which both companies involved in the saddle, deals with lots of debt, and keep the public markets. Silver lake investment group, $13.65 per share in cash for all will see the dell company private.
Dell company's proxy statement and not directly through the judgment of the blackstone group and Mr Icahn's bid, but it warned that any leveraged recapitalization is risky, if the company is public.
"Even to consider certain value distribution to shareholders, a leveraged recapitalization would be unlikely to lead to the total value of more than $13.65% share merger consideration, and will present a series of risks and challenges," dell said in a statement, refers to the special committee review.
A move that will reduce the employees, customers and suppliers in the company's confidence in the outlook for a long time, and may limit the ability of the company, actively implementing its long-term business strategy, dell.
The Boston consulting group, for dell analyzed the independent study in all cases, earnings fell to 2016 each year. Dell's board expects fiscal 2014 revenue was $30 billion, falling by as much as $5.6 billion, agents from the internal forecast last summer.
Lengthy negotiations
Dell drew a account of tough negotiations. It has set up a special committee to evaluate all the options, the company aims to calm face of Michael Dell, Michael Dell's concern about potential conflicts of interest.
Owned by CEO in 1984, he began in his college dorm 15.7% of $1000. In his private deals, Michael Dell, Michael Dell and his investment company will own 75.9% of the company, and the rest of the Silver Lake has.
Dell said, Michael Dell, Michael Dell and Silver Lake after the acquisition, expected to increase significantly the number of sales people and promote consumption of research and development. It added, is there any plan unfolds, the main asset sales, purchase
Restructuring plan, with dell as a public company, it will not be a shareholder's appetite, stocks may be affected, dell said.
Dell also said the strategy on January 24, did not reveal his or her identity, expressed interest in buying its financial services business, estimates that between the book value of $, $3.5 billion and $4.5 billion, not including debt.
An independent processing, so that will not benefit the company, dell's conclusion.
Blackstone's meeting
Michael Dell, Michael Dell) in 45 days, the so-called "go store" during the other bidders shall be invited to make an offer, met with blackstone and its Partners Francisco Partners, the company said on March 7, and 8 agent, this suggests that blackstone discovery early remain as CEO Michael Dell, Michael Dell).
Earlier this week, Michael Dell, Michael Dell) met with the blackstone group, senior managing director Dave Johnson and political chu, but the outcome of these discussions, did not become clear, a people familiar with the situation said on Friday.
Michael Dell, Michael Dell said that blackstone's quotation will be founded in 1984, PC makers, his attention, two of Michael Dell, Michael Dell told Reuters.
Buy-out firms plan would not to his strategy, then invest in the company's founder is a worry, they added.
Blackstone has done is not successful, called oracle CEO Mark Hurd (Mark Hurd) run Dell took over the company, a source familiar with the matter said last week.
Dell and its special committee, presided over by businessman alex mandel, to assess the company all of the possible strategic options, including the members of the board of directors, Laura's leah, janet clark, Kenneth Du Bo Stan.
Proxy statement showed that silver lake 6 times how to improve its offer, about $40 billion, or more than 20%, in the process of negotiation. Finally agreed on the price, $13.65 a share in cash $14.33 below dell's share price at the end of trading on Thursday.
In approval of the deal, announced on February 5th, dell company spent more than 5 month's assessment of the alternatives, including leveraged recapitalization and sale of all or part of the business.
Dell is regarded as a model of innovation, the latest at the beginning of the 21st century, the development order of personalized online configuration of the PC and close cooperation, with Asian suppliers and manufacturers, to ensure that the bottom cost.
But, as the fourth quarter of 2012, dell's share of the global PC market has fallen to just over 10%, from 12.5% a year earlier, according to research firm IDC. Special agent the commission statement shows how to capture the concept of public companies to a weaker financial fundamentals.
Dell's detailed documentation submitted to regulators, according to Microsoft's Windows operating system - the chokehold on the PC market had, how to weaken the other software.
Dell said it saw unclear by Microsoft's new Windows 8, which was launched to great fanfare last year, by enterprise and unexpected slowing, Windows 7
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