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Breakingviews: Dell vs. Icahn

Wednesday, June 05, 2013 - 03:34

June 5 - Dell's independent committee has made a compelling case for just how bad a shape the company is in – and how much better Silver Lake's buyout proposal is than Carl Icahn's.

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Heading into the final stretch on the -- buyout. The special committee of the company's board has come out with a fresh presentation trying to persuade investors to vote that is deal. And to keep ignoring Carl Icahn's. Sort of national above proposal. Tell me a little both our president today make you compelling -- give me compelling case suggest how that LA and how how so don't congress things -- I think -- and I can't operate even worse for -- -- -- what they benefits that okay is that Dell they've they've they've done these. Lots of graphs and not showing just how Portland PC market's doing house deals underperformed all these metrics. It's -- just. Again and again and again all these different ways and -- so awful -- floor and they must therefore sell well at concrete and only company. You know they'll take your hands at a premium which which is you know reasonable case right. And they also go into the icons special dividend -- -- you -- bigger the company paid Carol is twelve dollars special dividend or stock. And the company makes it since before well we've gotta the company's debt that needs here and a restaurant operating costs is sort of catch them but can't hear all of it right it employs and through -- and what -- the fight this was a full. -- -- hasn't so I think I think he's a guy let -- say that win this bid first came out limits of the big premium to where those traded for quite awhile. That it didn't look. That rips the price that you know that there was a reasonable argument that they'll compete with -- The and that that's way as these sort of the rival -- start to the southeast mismanagement and like on chemical late Blackstone wasn't there for -- laden was instant for awhile. And you know the idea was well based on the numbers we had the time you could make you case -- might do with low level it hadn't traded that -- but the industry has gotten worse and the guy -- news. Dell commissioned about stuff Boston Consulting Group and you and you can always say well consultants to study what you wanna live and if you're trying to make this is a good view of don't -- worse but it's hard to argue with -- the industry numbers PC shipments of particular. Took a big hit while it's -- with them doing what weeks what we saw was that there right now it actually makes what do pricey did -- If anything I think of these benefits low -- that. I'm Dell's Backus -- commas in editing might be feeling a little twenty. Out pretty good -- right. And and we haven't heard a lot more. From Carl Icahn he can -- got a little bit of money from. Jeffries I guess to help fund his bid but. We still haven't seen a full blown. It fully funded bid that's. It seems as if the dissidents are scaling back there. Their campaign against the offer. I mean of course those they're they're still haven't withdrawn at that they're not they're not. Twelve against the that they don't -- act quite as well. Things happen. And they find a reason for that mean it as Richard points out that PC market is certainly growing like this than like this and now it's like going straight to apps and anything else are we recommending. This do we have of I think we knew that we view it is the one that's gonna win it -- an event in the that if -- -- -- knew that it really isn't -- it is so I guess. And there's nothing really new in this -- they've just kind of they've taken stuff for vertigo kind of packaged up -- differently. Outcome is basically showing up at Ellis and -- -- option. Aren't well we leave it there will obviously keep an eye on this deal and be back with more Britain used to.

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Breakingviews: Dell vs. Icahn

Wednesday, June 05, 2013 - 03:34