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Michael Dell is very serious about Dell

Tells all in a staff email
Fri Aug 09 2013, 15:10
Dell founder Michael Dell

COMPANY FOUNDER Michael Dell has told Dell Inc that he is committed to it, and reminded it that his bid should be considered fairly.

Dell is competing to run the company against investor Carl Icahn. Both say that they are the best men for the job, and both have made very closely matched financial proposals.

The latest gambit by Michael Dell is an email sent to all of the company's employees. Michael Dell isn't looking to offload some garden furniture or asking some unknown person to move a bike, topics that are usually worthy of an enterprise send-all, but for understanding.

"Dell needs to transform, and we need to do it quickly. The technology landscape has fundamentally changed since the company was founded, and success requires this transformation."

Bloomberg has seen the email, and we've asked Dell - the company - about it, but it has not yet responded.

According to Bloomberg Michael Dell said that now is the time to make "the right decisions to position Dell, our customers and team members for long-term success".

"We'll retain the flexibility to invest in groundbreaking innovation both through organic R&D and acquisitions," he added.

Dell and Silver Lake Partners increased their offer by 10 cents to $13.75 a share, which put a price of $24.9bn on the firm. This and a reduced "break-up" payment amount were welcomed at Dell headquarters.

"The Committee is pleased to have negotiated this transaction, which provides as much as $470 million of increased value, including the next quarterly dividend that will now be paid regardless of when the transaction closes," said Alex Mandl, chairman of the Dell board's special committee.

The break-up charge was reduced from $450 million to $180m.

Last week Carl Icahn sued Dell in an attempt to stop changes to the vote. µ


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