A majority of Dell Inc. shareholders approved the joint proposal by Michael S. Dell, chairman and CEO, to acquire the company for $24.9 billion in partnership with Silver Lake Partners, based on a preliminary vote tally from Thursday's special meeting, according to a Dell statement. A count wasn't available.
Pension funds lined up on both sides of the deal.
The $170 billion California State Teachers' Retirement System, West Sacramento, and the C$129.5 billion (US$125.2 billion) Ontario Teachers' Pension Plan, Toronto, voted against the deal.
Voting for the buyout proposal were the $260.9 billion California Public Employees' Retirement System, Sacramento; the C$188.9 billion Canada Pension Plan Investment Board, Toronto; $166 billion Florida State Board of Administration, Tallahassee; $50.5 billion Pennsylvania Public School Employees' Retirement System, Harrisburg; the $25.9 billion Connecticut Retirement Plans & Trust Funds, Hartford; the $19 billion General Board of Pension and Health Benefits of the United Methodist Church, Glenview, Ill.; the $12.8 billion Illinois State Board of Investment, Chicago; and the $1 billion American Federation of State, County and Municipal Employees staff pension plan, Washington.
Carl Icahn and Southeastern Asset Management on Monday gave up their joint effort to derail the proposal and offer their own proposal to take control of Dell, contending the company did a disservice to shareholders by manipulating the voting process, noting the company's board rescheduled the vote from three earlier dates as Mr. Dell and Silver Lake sought to win more support and that the company changed the voting standards.
Shareholders will receive $13.88 a share in cash, consisting of $13.75 for the buyout and a 13-cent special dividend, the statement said. In addition, shareholders of record as of the closing of the deal will receive a quarterly dividend of 8 cents a share.
Dell expects the transaction to close by the end of October, the statement said.
