Dell’s plan to go private in what would be one of the biggest leveraged buyouts in recent years appears to be in jeopardy. Some of the company’s largest shareholders have come out against the move. Southeastern Asset Management filed with the Securities and Exchange Commission a letter it sent to Dell’s board of directors warning them that it will vote against the deal because it “grossly” undervalues the company. The deal “appears to be an effort to acquire Dell at a substantial discount to intrinsic value at the expense of public shareholders,” the letter says.
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Disgruntled Investors Could Deep-Six Dell Deal
Posted by: Erika Morphy February 12, 2013 05:00 AMDell’s plan to go private in what would be one of the biggest leveraged buyouts in recent years appears to be in jeopardy. Some of the company’s largest shareholders have come out against the move. Southeastern Asset Management filed with the Securities and Exchange Commission a letter it sent to Dell’s board of directors warning them that it will vote against the deal because it “grossly” undervalues the company. The deal “appears to be an effort to acquire Dell at a substantial discount to intrinsic value at the expense of public shareholders,” the letter says.