Dell shut down
The CEO of Dell Computers has had his plan deflated, after he proposed changes to voting rules to allow his bid to buy the slumping personal computer maker.
Dell CEO Michael Dell had been working on a plan for himself and his main backer, Silver Lake Partners, to absorb the company, after reaching an agreement with Dell's board nearly six months ago to buy Dell for $US24.4 billion, or $US13.65 per share.
The Dell executive board has rebuffed CEO Michael Dell’s attempt to change the company voting rules so that shareholders who do not vote are not listed in the ‘opposition’ column. Mr Dell even offered an extra $150 million to see the changes made that would virtually assure his successful takeover.
The board rejected the CEO’s demand, saying it was willing to put off the vote to give shareholders more time to consider the buyout proposal, providing Michael Dell and Silver Lake don't withdraw the slightly higher offer of $US24.6 billion, or $US13.75 per share, dangled before the company last week.
Dell has faced tough times since recent smartphone/tablet revolutions knocked the wind out of the home PC market, the company is seen by some shareholders to have been too slow in attacking the mobile market, and may now have been left behind.
Opponents of the Silver Lake buyout have proposed sacking Mr Dell and the entire board, and replacing them with a team to change the company’s direction.
There has been no word yet on when the takeover vote will occur.