Dell Rejects Founder's Revised Offer

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It looks like Michael Dell might have to up the ante once again to get shareholders on board with his plan to take the company private.

In a letter sent to Michael Dell on Tuesday and released today, Dell's Special Committee of the Board of Directors, which is tasked with evaluating all buyout offers, said that it's "not prepared to accept" the proposal Dell and his partners brought before it last week. The Committee didn't say why it's unwilling to accept the proposal at this time.
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I hope he can pull it off just to see what the company can do with no one to answer to.
 
I don't get why he doesn't just let them keep running it into the ground, after share values are cut in half he can come back and buy it at a bargain. When you got a tool like Icahn in your company it's as good as dead so give him what he wants, sit their and run the company into the ground and make him leave.
 
Man, if I was in his shoes, I'd put in my offer and make it known that if it's not accepted, I'd leave the company.

The investors are rejecting it because they want more money (duh). But ONLY because Dell already told them he'd stay no matter what.
 
No matter the outcome, I have a hard time understanding how Dell will be successful. They have no engineering prowess to speak of, no presence in tablet or mobile (the only thing growing) and their only strength has always been keeping manufacturing costs low. Problem is that you can't out-cheap China and now they're competing head-to-head with Chinese OEMs who they will never out-cheap.

Unless HP is looking to purchase another Texas OEM, I don't see any future.
 
PurduEE said:
No matter the outcome, I have a hard time understanding how Dell will be successful. They have no engineering prowess to speak of, no presence in tablet or mobile (the only thing growing) and their only strength has always been keeping manufacturing costs low. Problem is that you can't out-cheap China and now they're competing head-to-head with Chinese OEMs who they will never out-cheap.

Unless HP is looking to purchase another Texas OEM, I don't see any future.
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That's just it. A complete change in direction is hard. It's impossible with shareholder doubt. Maybe Dell doesn't want to out-cheap anyone. This is likely the first steps of a complete makeover.
 
PurduEE said:
No matter the outcome, I have a hard time understanding how Dell will be successful. They have no engineering prowess to speak of, no presence in tablet or mobile (the only thing growing) and their only strength has always been keeping manufacturing costs low. Problem is that you can't out-cheap China and now they're competing head-to-head with Chinese OEMs who they will never out-cheap.

Unless HP is looking to purchase another Texas OEM, I don't see any future.
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Don't forget that Dell is basically the Microsoft of the enterprise world. Probably over 90% of computers and devices you see in businesses are Dell.
 
No edit: maybe a better analogy is Dell is the hardware while Microsoft is the software, to the enterprise world.
 
PurduEE said:
No matter the outcome, I have a hard time understanding how Dell will be successful. They have no engineering prowess to speak of, no presence in tablet or mobile (the only thing growing) and their only strength has always been keeping manufacturing costs low. Problem is that you can't out-cheap China and now they're competing head-to-head with Chinese OEMs who they will never out-cheap.

Unless HP is looking to purchase another Texas OEM, I don't see any future.
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Dell is still a 50+ billion dollar revenue company ... the vast majority of their business is enterprise not consumer (which tablets are more centered on) ... Dell's mobile laptop offerings are very competitive and well received in the Enterprise segment

Consumers may be willing to go for the cheap Chinese offerings (and some businesses outside the USA) but the reliability and service of the big three Enterprise providers (Lenovo, HP, and Dell) will not be easily displaced by the cheap Chinese companies who either sacrifice reliability, service, or both ;)
 
MingoDynasty said:
Don't forget that Dell is basically the Microsoft of the enterprise world. Probably over 90% of computers and devices you see in businesses are Dell.
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90% is a bit exaggerated. Gartner shows Dell as having roughly 10.7% of worldwide share in 2012. I see less Dell systems than I used to - seems like more Lenovo these days.
 
What amazes me is these companies making billions a year and shareholders complaining they're not making enough.
 
jstnomega said:
the MS 2B$ (USD) ante hardly constitutes no one to answer to
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Didn't know that. That makes it even more interesting. MS may want a premium hardware partner and Dell is unable to position itself that way with shareholders in the way.
 
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