Another big Dell stockholder says no to buyout as resistance mounts

Dell logoDell's leveraged buyout deal has run into more resistance. Today, T. Rowe Price Chief Investment Officer Brian Rogers said that his company would vote against the buyout.

"We believe the proposed buyout does not reflect the value of Dell, and we do not intend to support the offer as put forward," Rogers said in a statement to Reuters. That echoes the statement issued by Southeastern Asset Management last week, when that firm announced it would oppose the deal on the grounds that it believed Dell was worth twice what the buyout offered.

Reuters reports that three other large Dell investors are also planning to vote against the company's plan.

Between the two investors, T. Rowe Price and Southeastern are estimated to control about 13 percent of Dell's outstanding shares (4.4 percent and 8.5 percent, respectively). The other firms leaning toward opposing the deal own roughly another 5 percent of Dell's stock. And as a block, the group could sway other smaller investors to give them their votes in a potential proxy battle with Dell's management.

The terms of the buyout offer give Dell 45 days to "go shop" for better offers for the company. But the terms also give Michael Dell and Silver Lake the right to match any other deal and make it more expensive for other bidders to try to buy the company. And in the event that someone does come up with a winning bid, Michael Dell would still walk away a winner—as they would have to buy his 16 percent stake in the company.

Source: Ars Technica

Tags: Dell

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