After much anger from shareholders, the Dell board set up a special committee to discover if there were more attractive suitors available in the market than it’s found Michael Dell and Silver Lake partners.
It has emerged that there were superior bids from Blackstone Group and Carl Icahn price wise. However, the committee has advised that the proposals from both groups have not yet been finalised or confirmed in detail so therefore it was not yet clear whether either of these bids were better than the original bid. Although the offer price range is greater than the initial offer from Michael Dell and Silver Lake Partners, the devil could be in the detail and could leave shareholders worse off.
With all the facts as it currently stands, Dell continues to be the superior bid as it’s details are completely transparent for shareholders. One thing that may come from the extra bids is a sweetened deal from Michael Dell.