| SAN FRANCISCO/NEW YORK, March 29
SAN FRANCISCO/NEW YORK, March 29 Dell Inc
founder Michael Dell's efforts to take the PC company
private began last summer with an idea pitched by its top
institutional shareholder, Southeastern Asset Management.
Here is a timeline of the discussions as disclosed on Friday
in Dell's preliminary proxy statement :
June 15, 2012 -- Southeastern Asset Management, which owns
146.5 million shares or about 8.4 percent of Dell, contacts CEO
Michael Dell to suggest "a going private transaction" and
expresses the fund's interest in participating in it.
July 17 -- Michael Dell meets a representative of private
equity firm Silver Lake Partners at a conference and they set up
discussions in August. In these talks, Silver Lake suggests to
Dell's founder he should take the company private.
Aug. 11, 13 -- Michael Dell meets with a representative of
another private equity firm, identified in the proxy only as
"Sponsor A," to ask what it thought of such a transaction.
Sources told Reuters Sponsor A is private equity firm KKR & Co
LP. KKR declined to comment.
Aug. 14 -- Michael Dell informs board member and lead
independent director Alex Mandl that he is exploring a buyout
but says he has made no decision.
Aug. 17 -- The board has a teleconference during which
Michael Dell briefs them on the take-private idea and
discussions surrounding it. The board decides to consider a
potential transaction and other strategic alternatives.
Aug. 20 -- The board forms a special committee consisting of
Mandl, former co-director of Goldman Sachs' Americas equity
research unit Laura Conigliaro, Marathon Oil Chief Financial
Officer Janet Clark and consulting firm Duberstein Group CEO
Kenneth Duberstein. Mandl is subsequently appointed chairman of
the special committee.
Aug. 21 -- Dell reports weak second fiscal quarter results.
Revenue of $14.5 billion was about $300 million less than what
management had expected. The company lowers fiscal 2013 outlook.
Aug. 24 to 29 -- Mandl holds discussions with investment
bankers JPMorgan Chase & Co and Goldman Sachs Group Inc
to select a financial advisor. JPMorgan is retained.
Sept. 14 -- JPMorgan tells the special committee it has
identified other financial sponsors as potential buyers but
notes that Silver Lake and KKR are best placed as each could
complete a transaction with significant committed equity.
Oct. 23 -- Silver Lake and KKR submit preliminary proposals
to acquire Dell. Silver Lake's purchase price is between $11.22
and $12.16 per share, and KKR's purchase price is between $12
and $13 per share. Both assume Michael Dell would participate in
the deal. KKR also assumes Southeastern would participate.
Oct. 27 - The special committee discusses with Dell Chief
Financial Officer Brian Gladden potential strategic alternatives
such as returning capital to shareholders through a leveraged
recapitalization, accelerating the company's current plan, a
transformative acquisition and separating certain businesses.
Nov. 2 -- JPMorgan informs Silver Lake and KKR the special
committee is not happy with the price ranges.
Nov. 12 -- Dell hires Boston Consulting Group to review
Dec 3 -- KKR withdraws from the process, mainly because it
is not comfortable with the risks associated with Dell.
Dec. 4 -- Silver Lake submits an updated proposal to acquire
Dell for $12.70 per share.
Dec. 7 -- Mandl invites another firm, identified in the
proxy only as "Sponsor B," to consider making a proposal. A
source told Reuters Sponsor B is private equity firm TPG Capital
LP. TPG did not respond to a request for comment.
Dec. 10 -- Mandl informs Silver Lake its offer price is too
low. Silver Lake seeks permission to involve Microsoft Corp
, from which it intended to seek financing.
Dec. 14-16 -- The company enters into confidentiality
agreements with debt financing sources of Silver Lake: RBC
Capital Markets, Credit Suisse Securities, Barclays Capital, and
Bank of America Merrill Lynch.
Dec. 17 -- Michael Dell meets with senior representatives of
TPG to discuss a potential proposal.
Dec. 23 -- TPG informs it is withdrawing from the process,
primarily due to "risks and uncertainties in the PC business."
Jan. 16, 2013 -- Silver Lake submits another proposal to
acquire Dell for $12.90 per share.
Jan. 19 -- Mandl tells Michael Dell the special committee is
willing to support a transaction at a price of $13.75 per share.
Michael Dell then discusses it with Silver Lake, which later
proposes a price of $13.25 per share.
Jan. 20 -- Silver Lake informs Dell it is willing to
increase its offer price to $13.50 per share.
Jan. 24 -- Silver Lake increases its offer to $13.60 per
Jan. 24 -- A party identified as "Strategic Party A"
expresses interest in purchasing Dell's financial business for
about $3.5 billion to $4 billion. Blackstone Group LP
also expresses interest in exploring a transaction. It could not
be confirmed whether Strategic Party A IS General Electric Co
, which sources previously said had been approached by
Blackstone. GE has previously declined comment.
Jan. 29 -- Southeastern informs special committee it would
oppose any deal in the range of $14 or $15 per share that did
not provide existing large stockholders with an opportunity to
Michael Dell and Silver Lake say they are not interested in
pursuing a deal in which any public stockholders would retain an
Feb. 3 -- Silver Lake submits a revised proposal, offering
$13.60 per share if the company continues paying its regular
dividend, or $13.75 per share if the company stops paying
Feb. 4 -- Silver Lake ups its offer to $13.65 per share,
with the Dell allowed to carry on paying its regular dividend.
Special committee recommends accepting Silver Lake's
Feb. 5 -- A deal with Silver Lake is announced and a 45-day
period starts to uncover other offers. Dell contacts 67 parties,
including 19 strategic parties, 18 financial sponsors and 30
others such as sovereign wealth funds. Unsolicited inquiries are
also received from four parties, including two strategic and two
March 5 -- Activist investor Carl Icahn sends a letter to
Dell's board stating he is a substantial holder of shares. Icahn
later reveals he has $1 billion worth of Dell shares.
March 21 -- Dell advisor Evercore receives an indication of
interest from Strategic Party A for a proposed acquisition of
Dell's finance business.
March 22 -- Blackstone and Icahn Enterprises send proposals
to the special committee. Blackstone, which teamed up with
Francisco and Insight Venture partners, offers in excess of
$14.25 per share for the whole company, while Icahn offers about
$15 per share for 58 percent. Under both proposals, Dell would
remain a public company.
March 25 -- Dell releases 274-page preliminary proxy
statement on its buyout negotiations.
Sources: Dell's proxy statement, Reuters