Menu
Dell's private buyout shortchanged shareholders, court rules

Dell's private buyout shortchanged shareholders, court rules

The company was worth more than Michael Dell and Silver Lake Partners paid

Michael Dell and Silver Lake Partners paid about 22 percent too little for Dell when they took the company private in 2013 and will have to pay millions of dollars more to shareholders who opposed the deal, a Delaware court ruled on Tuesday.

Though the buyers paid $24.9 billion, or $13.75 per share, the company's actual fair value at the time was $17.62 per share, according to Delaware Vice Chancellor Travis Laster.

The decision comes in response to a lawsuit brought by a number of Dell investors who felt shortchanged by the deal. Through what's known as an appraisal suit, they asked the Chancery Court to determine the fair value of their shares at the time.

Only shareholders who voted against the deal are eligible for compensation, which reportedly will total about $35 million. Owners of about 5.5 million shares reportedly were affected by the decision.

Oddly, because of what Vice Chancellor Laster earlier this month called "byzantine" complications in the voting process, one of the deal's biggest opponents -- mutual fund manager T. Rowe Price -- mistakenly voted in its favor. That, in turn, rendered the firm’s roughly 30 million shares ineligible for compensation.

Dell did not immediately respond to a request for comment. Silver Lake declined to comment.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Slideshows

Meet the leading HP partners in New Zealand...

Meet the leading HP partners in New Zealand...

HP has recognised its top performing partners in New Zealand at the second annual 2016 HP Partner Awards, held at a glittering bash in Auckland. The HP Partner Awards recognises and celebrates excellence, growth, consistency and engagement of its top partners. This year also saw the addition of several new categories, resulting in 11 companies winning across 11 award categories.

Meet the leading HP partners in New Zealand...
Channel comes together as Ingram Micro Showcase hits Auckland

Channel comes together as Ingram Micro Showcase hits Auckland

Ingram Micro outlined its core focuses for 2017 at Showcase in Auckland, bringing together the channel for a day of engaging keynotes, compelling breakout sessions and new technologies.

Channel comes together as Ingram Micro Showcase hits Auckland
Show Comments