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Dell Computer Corporation (DELL) Message Board

  • come_to_grief come_to_grief Mar 1, 2013 10:50 AM Flag

    Michael Dell really want th sell out?

    I got to admit that Michael Dell has taken his opportunity to place DELL--the company--into play. At a minimum, his offer submittal elevated the share price. Sure, the price had decayed far from it's intrinsic value...and YES the start of the upward move occurred prior to the around $10.88...yet the offer cemented the continued move up to where is stands right now.

    I don't question M. Dell's motivation, he has publicly lamented for some time that the share price isn't representative of true value...he made those statements when share price was trading in the $14 range.

    What I do question is his objective. Does he really want to take DELL private? There is doubt from my perspective. If the ultimate outcome was to go private, then a legitimate offer would have been that represented true value, something he has been harping about for some time.

    Heck, why not get things rolling by submitting an offer that had a reasonable likelihood of rejection?? If accepted for some strange reason then all the better. Wouldn't that drive dissatisfied owners to claim foul and get them to delineate why the offer is neither fair or reasonable? SE Partners has done exactly that, item by item.

    Did M. Dell anticipate such a reaction? Now, potential outside bidder(s) have a sound third party basis on what DELL valuation may indeed be to begin their own due diligence; thus is there enough reward and synergy for a strategic fit? According to the valuation of $24/share the answer is more than a lukewarm--YES.

    So where is the strategic buyer and whom is it? I've already suggested that Lenovo wants better US market share, so does DELL fit for them? I wouldn't expect a hard stance from the US lawmakers, and certainly MOFOCOM would celebrate the maneuver. Further, would HP stand for a Lenovo takeover? Hardly...more to this story forthcoming for sure.

    Whatever the scenario, it sure seems to benefit the current shareholder.


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