After 7 long months the power struggle at Dell Inc is finally over. With Carl Icahn's withdrawing, on Tuesday, leaving Michael Dell and his backers, Silver Lake and Redmond’s own Microsoft, as the winners. With the competition out of the way the stockholder quickly approved the buyout on Thursday. With that approval,by the end of October, the company will go back into the hands where it started in 1984.
"I am pleased with this outcome and am energized to continue building Dell into the industry's leading provider of scalable, end-to-end technology solutions," said Michael Dell, who serves as the company's chairman and CEO, in a statement.
After years of seeing a decline in revenues, due mainly from the decline in PCs, in February Michael Dell announced the plan to take the self-named company private. The reason Michael Dell gave for this decision was that by going private he would be able to turn the company around faster since he would not be under federal regulations. Just which regulations might slow the turn around of his comany he never specified.
"The PC business is in a tough spot," says IDC analyst Bob O'Donnell. "We don't see any rapid turnaround anytime soon."
In 1987 Michael Dell placed his 3 year-old company on the public exchange. He stayed on as CEO and soon built his company into one of the largest computer manufacturers in the country. When the company goes private in October it will mark the first time in 25 years that there will no longer a listing for Dell in the stock section of the paper.
When the sale of the company is finalized on November 1, 2013 the stockholders will receive a total of $13.88 a share ($13.75 + a 13 cent dividend) for their stock.
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