Prior to buyout rumors, DELL stock traded about $9.50 to $10 per share. Considering the recent months
market run-up, without any buyout rumors I expect DELL stock would currently be trading about $10.50 per share.
What are you babbling about ?
Mike Dell's $13.65 offer is about a 35% premium above where DELL shares traded much of last year.
Without his offer, and especially considering DELL's recent quarterly business numbers, DELL stock would likelb trading at $9.50 per share right now.
Considering that shares not voted will be registered as "no votes", the LBO offer has practically no chance of approval.
I expect that most all those satisfied with a $13.65 price have already taken the opportunity to sell their shares. The remaining shareholders, mostly new to DELL and speculating here, are not inclined to vote.
Once the vote happens, and the LBo offer is officially rejected, I expect DELL shares will immediately trade in the $9 to $9.50 range. At that point Southeastern Asset Management, T. Rowe Price, and other significant DELL shareowners, will have some explaining to do to thier clients. Choosing to vote against $13.65 , and accept the shares trading below $10, a more than 30% decline, is a challenging position to defend.
You mean when the current buyout offer of $13.65 is rejected and DELL share trading prices drops down to about $9 per share?
#1, you might have at one time owned afew hundred DELl shares.
10.000 shares? Not a chance.
#2I never told anyone to sell anything. I wrote that Dell would likely be acquired at $12,50 per share. That may still prove true. In any case, $13.50 is a very large premium price which Mike dell is currently offering shareowners.
Hope this helps.
Now i must ask, if Southeastern's "analysis" values DELL at $23 per share, why doesn't Southeastern make their own buyout offer at $16, or even $15 ?
Why has KKR, or Berkshire, or Ichan, Oracle, or any other well capitalized firm made a buyout offer for Dell ? I
The company is for sale right now, open to any interested and capable bidder.
Why shoukd Mike dell overpay now? If his offer is rejected he will most likely have the option , later this year or next year, of making another buyout proposal, at potentially a significantly lower offer price.
I am aware of Southeastern's function as a "money manager'. However, if that firm has true conviction that "Dell is worth $20 or more" then Southeastern should consider transforming its function to that of an LBO business management operation. It's really their only option to get a higher return for their current Dell investment.Just complaining about someone elses offer for their shares is not productive, or even professional.
No reasont to sell now. Mike Dell and his LBO team will wait until the shareholder vote before either payingthe $13.65 per share, or retracting their offer.
In the meantime, there is a chance that another bidder might emerge.
Consequently, the risk in owning DELL shares is greatest on or near the voting date.
As for your supposition that potential "yes" voters may have already sold and, or are selling at current prices, I agree, that is happening.
#1 if no other buyout offer emerges, why would Mike Dell and his LBO team increase their current $13.65 offer?
#2 if Dell stock is worth $16, $20 or as some here say, $24 per share, then why haven't any other buyout offers emerged?
#3 is Southeastern Asset Management thinks Dell's $13.65 offer is "woefully inadequate' then why doesn't Southeastern offer $15 and buy the company themselves?
If no other buyout offers emerge, then DELL stockholders
may vote YES to accept the current $13.65.
If stockholders do not cast a vote their shares are automatically registered as "NO' (to the 413.65 offer.
If not enough YES votes are cast, or stockholders choose not to vote, then the 413.65 offer will not pass and DELL shares will likely trade down to the $10 per share price, where it was trading prior to buyout rumors.
The above are the two current options. Hope this helps!
"Voting your proxy" to Southeastern accomplishes nothing for shareholders.
If Southeastern submitted their own buyout proposal, for a higher price than $13.65, that would help DELL shareholders.
Sotheastern (or any other shareholders) whining they want a higher price doesn't do anything. Only a second or third bidder, offering more money, will raise the buyout price. Get it ?
Hope this helps 1
What are you babbling about?
In down real estate markets people lose money.
in down stock markets people lose money.
For some reason this message board is filled with fools who think an investment of money is somehow 'guaranteed" and that the buyer has no risk of financial loss.
Every stock prospectus includes a long list of potential and real risks associated with buying a particular security..
Many people sell their home for less than they paid for it.
Even more sell their stocks for less than they paid for them.
No need to "vote your proxie to Southesastern". A vote not cast ius recorded as agaianst the buyout proposal.
If Southeastern belives Dell is "worth $26" then Southeastern should submit their own buyout proposal.
Where were you last year when DELL was trading $9 , $9.50, $10 per share?
That was the time to buy DELL shares and make money.
But you missed the boat and now shamelessly come on here thinking Mike Dell owes you something? Pathetic.
Apparently, Mike Dell is everybody's daddy here. No matter that most of these fools asking for "higher buyout price" bought in AFTER buyout rumors jacked up the share price 30%. THERE was the premium in th deal.
Or, incompetent money managers , like Southeastern or T. Rowe price bought their shares at way too gigh a price.
Now Mike Dell is supposed to be everybody's daddy and pay all you fools for your mistakes? Why should he??
I really hope Mike Dell's generous $13.65 offer does not receive enough yes votes, and that the LBO team walks away. Let DELL stock decline down to $6 or $7 per share and teach all the shameless amateurs here a lesson.
DELL's corporate cash reserves were part of the company when DELL traded $9 to $10 per share for much of last year.
And DELL"s corrporate cash reserves are a major reason Mike Dell offered the premium buyout price of $13.65 per share.
Without its cash reserves, DELL stock would have been trading about $5 per share, and the buyout offer would have been about $6 per share.
Hope this helps.
If $13.65 does not receive enough yes votes, Mike Dell and his LBO team can walk away from their offer.
Depending on the economoy, overall stock market, Dell's bsuiness operations etc... a year from now DELL stock could easily be trading at $6 or $7 per share. If that happens, and mike Dell is still interested in privatizing DELL, he could make a $9 per share offer and have it accepted. Much can happen during the forthcoming 12 months, there are no guarantees .
Why would Mike Dell and his LBO team bid against themselves?
If no other buyout offer emerges I would expect Mike would be more likely to lower his buyout offer rather than he would be to increase it.