Michael Dell Eyes On A Delay In The Date Of Shareholders Vote Of A Buyout For Dell Inc., (NASDAQ:DELL)

Denver, CO, 07/18/2013 (Avauncer.com) – Shares of Dell Inc., (NASDAQ:DELL) fell 1.08% to close at $12.88 in its last trading session. This was the lowest the stock has fallen ever since July 5. It however managed to remain at the higher end of its 52-week price range of $8.69 to $14.64. Shares however remained heavily traded, with 51.98 million shares exchanging hands, as against an average volume of 22.33 million shares.

The fall was amidst rumors that the Dell’ board was considering a delay in the vote with fears that a rising number of shareholders were opposing Michael Dell’s proposal of $13.65 per share offer. Wednesday was witnessed a stream of reports flooding the market of the rising number of dissident voters, with Vanguard Group Inc., the largest U.S. mutual fund manager that has a 3.7&% stake in the company was reported to vote against the deal. This was also followed by other minority shareholders coming out in the open against such deal. The only bailout remains with Michael Dell is if other shareholders, excluding Michael Dell’s 16% stake in the company, vote for a buyout in order to make the deal through. Therefore, shareholders other than Michael Dell, collectively owning 43% need to vote in favor of the deal. It is this what Michael Dell has been eyeing on, even with a delay which will buy him time to persuade shareholders to support him.

Opposing this, Mr. Icahn who has amassed an 8.7% stake in the company said that the vote be completed on July 18 itself, with making an appeal to shareholders again to oppose the buyout.

Despite all of this, Michael Dell and its partner in the deal Silver Lake Management have been stubborn in raising the offer price; despite it being supported even form Dell’s Special Committee. It was also reported that they would stick to their offer, even if there was a delay in the vote.