Dell Shareholder Demands Look at Books

Editor’s note:  As part of our special editorial partnership, Channelnomics is publishing this recent article from CRN in the UK.

Michael Dell’s smooth MBO plans have encountered a hitch, as his firm’s largest outside shareholder has demanded to see the books.

According to Reuters, Southeastern Asset Management – which controls 8 percent of the company and is known to be unhappy about the move – has asked Dell to open its books on behalf of its largest client, Longleaf Partner Fund.

This sends a signal that the body could potentially become more active in opposing the $24.4 billion plans to take the PC and server maker private.

“Shareholders should be provided with meaningful, straightforward information,” the firm said in a letter to Dell.

Last month Michael Dell hit back at criticism of his plans to take his namesake private, arguing in an open letter to customers that they would do better with Dell away from the prying eyes of the stock market.

“We believe that our proposed new ownership will provide long-term support to help Dell innovate, invest for growth and accelerate our transformation strategy,” Dell said.

The deal is being financed by Michael Dell’s own cash and equity, company cash on hand, Silver Lake investments funds, and rollover of existing debt and debt financing provided by BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets.

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