A special committee of Dell Inc.'s board on Friday said it reached a revised agreement with company founder, chairman and CEO Michael Dell over a buyout of the company, raising the total purchase price to at least $13.88 per share, according to a statement on the Dell company website.
Mr. Dell and his partner, private equity firm Silver Lake Partners, would pay $13.75 a share, up from the original $13.65 a share, and a special dividend of 13 cents a share financed by Mr. Dell under the new agreement.
In return, Dell shares not cast in a special election would no longer be considered “no” votes.
A shareholder vote on the $13.65-a-share buyout bid had been scheduled for 9 a.m. CDT Friday, but the special committee said the meeting would be adjourned to 9 a.m. CDT Sept. 12.
“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,” Alex Mandl, chairman of the special committee, said in a statement on Dell's website.
Investors Carl Icahn and Southeastern Asset Management had made a series of alternative proposals to derail a takeover by Mr. Dell, including a $14-a-share buyback. On Thursday, Mr. Icahn filed suit to block Mr. Dell from changing procedures for voting on the deal, accusing the founder of trying to “ram through” the buyout.
In a statement Friday, Mr. Icahn said he and other shareholders “have won yet another battle … However, we are not satisfied. We believe that an increase of a mere 13 cents is an insult to shareholders. And promising shareholders an additional 8-cent dividend that we were already entitled to, and pretending that it is some sort of gift, is a further slap in the face.”
Mr. Icahn also said he would not withdraw the lawsuit he filed in Delaware Chancery Court.” We believe this lawsuit has now become of paramount importance,” he said.
Bloomberg contributed to this article.
