There is no chance that this deal for 13.65 fails. Its overly generous. No sane shareholder would not approve it.
Carl and other dissenters will get their dividend and 13.65 and be done with it.
Dell will be a privately held company by August.
Simple solution to any long that worries that the deal may fail. Sell the Jan 2015 15 calls. Collect 33 cents each.
Option 1, the stock backs off and deal disolves, you keep the 33 cents.
Option 2, the deal goes thru at 13.65, and you keep the 33 cents.
No matter how you look at it, you keep the 33 cents.
What is NOT going to happen is a deal over 15. No magic offer will arrive to get shareholders one penny more than 13.65.
Sooner. If the committee rejects Icahn's offer as a NON-OFFER, they will just move forward with the only REAL offer.
MD is probably #$%$ he made such a high offer. It should be 12, not 13.65
This deal makes the Skype purchase by EBAY look good.
Tumblr is a highschool project.
Its nothing like twitter, instagram, pinterest or youtube
There is NO way to make any real money from tumblr. Its users, which are far fewer frequent users than anyone can imagine, will not endure any advertising.
This is a total sucker deal. I have lost all my respect for Marissa. She is a cookie cutter MBA dope that has no real vision.
PS: Alibaba is not worth as much as most think.
The deal is done, 13.65 It will be approved. Icahn will never get seats on the board of directors, his stake and those of others is under 20%. Furthermore if Michael/Silverlake/Msft offer were not accepted via shareholder vote, then the stock would plunge and Icahn would have already sold and run for the exits before anyone will even know it.
If the deal were so good, why doesn't Icahn offer $14 and take all these future valuations for his own.
Pure profit?
Because his deal is a scam. Its a $12 special dividend in disguise. Nobody will ever go for that crazy deal.
There is no excuse for throwing away money.
You want to gamble, buy TSLA calls or puts, the stock moves quickly on some days.
He makes 80 cents a year BEST CASE. He does get $4 in cash from Dells coffers, so he is only paying $9.65 for the company.
They sell desktops at a loss. Laptops at break even.
The fewer of those clients they keep the less they make on consultation.
Servers are all they have. And that business is tough, HP, IBM, all cutting margins.
Throwing money away is never OK.
Nothing, and I mean NOTHING can make the stock trade OVER $14, unless there is an OFFER of $14 or more.
Icahn's offer is $12ish. MD is 13.65. All others have LEFT the game.
If these numbers today are any indication of how bad it is, expect the stock to fall, not rise.
MD cannot change his offer, only pull it.
If he did, Icahn would lose a pile of money. So would MD so its just not gonna happen.
Fact is this, Michael knew that the numbers were going to show decline after decline, miss and more misses.
There is no guidance, which is a scandal in an of itself, because Icahn and MD have seen the books, they know what is coming next Q. We may see a loss.
Yes, without a tool that returns the start button to the desktop and quarantines the metro disaster, Win 8 is pretty had to swallow.
That's $300 you can kiss goodbye.
Better go sell 10 Jan 2015 15 contracts to get your money back.
He forces Dell to go to the bank or issue paper to raise billions of dollars. He then loots ALL the cash and quick sale assets from the company to pay out a 12 dollar dividend.
What is left is a debt laden, barely profitable business in decline.
He then strips off all the remaining assets on the stub, does another special dividend in 6 months, then walks away. Leaving the bond holders and banks to take a 8 billion dollar loss on a bankrupt company.
The shareholders may get an extra 50 cents in a year over the 13.65 offer, but the company and its leadership dissolve by 2015.
There is NO WAY the committee will approve that deal. Nor would anyone lend Dell the money to pull this scam.
Its as bad as it gets.
Michael is overpaying and Icahn will go away.
Sales higher so margins are even lower than first expected.
Imagine the guidance. Could they guide to a loss for the next quarter?
Beat? The number leaked a few days ago. A big miss. FAIL bottom line.
Nicely said sir, nicely said.
Want to make a few more bucks, sell some leaps. The Jan 2015 15 calls sell for 35 cents.
Those expire at zero in a few short months.
Even excessive.
If he had waited two quarters to make this offer, his offer could have been 10 and it would be accepted.
This is a miss by HALF. 40 cents expected, 20 cents delivered.
If there were no offers on the table for Dell, the stock would be at 7 as a result of this news.