ROUND ROCK, Texas -- Dell says a preliminary tally shows that shareholders have approved a $24.8 billion offer from its founder to buy the company and take it private.
The deal will end Dell's 25-year history as a publicly held company.
Shareholders met at the company's Round Rock offices to vote on CEO Michael Dell’s $25 billion offer Thursday. Shareholders have already met three separate times in recent months. In that time, Dell upped his bid and his main competitor, Carl Icahn, pulled his offer off the table.
Dell and his financial partner, Silver Lake, are offering $13.75 cents per share with a 13-cent dividend. Dell says going private will help the company. It also gives him freedom to restructure the company without getting the approval from shareholders.
“The road to recovery through going private is going to be much easier to achieve,” explained economist Angelos Angelou. “It allows him a lot more flexibility to the business without the public scrutiny.”
Like other PC makers, Round Rock, Texas-based Dell Inc. has been hit hard in recent years by the continued shift away from desktops and laptops and toward tablets and other mobile devices.
Michael Dell, who is making the offer with a group of investors and lenders, has said he can turn the company around, but he says the process will involve a painful realignment that will likely trim its earnings for another year or two. Dell says the turnaround will be easier to pull off away from Wall Street.
Although Icahn pulled his offer, he continued to warn shareholders against Dell’s deal, claiming it undervalues the company.
In the last quarter however, Dell earnings dropped 72 percent.