SAN FRANCISCO, July 18 (Reuters/EP) -
The chances of Dell founder Michael Dell and private equity fund Silver Lake buying the world's third-largest personal computer maker became more uncertain on Wednesday, a day before a shareholder vote on its $24.4 billion (€18.583 billion) offer.
The stock fell 1.1 percent to $12.88 (9.80 euros), its lowest level since July 5, as Dell's board considers postponing the vote amid reports that a growing number of shareholders oppose Michael Dell's $13.65 (10.39 euros) per share offer.
Dell may decide to postpone the July 18 vote to buy time and get support for the deal, a person with knowledge of the matter said Tuesday, asking not to be identified because the deliberations are confidential.
In an open letter to shareholders on Wednesday, billionaire activist Carl Icahn, who has amassed an 8.7 percent stake in Dell, has said the board's special committee must allow a final vote to be completed on July 18 as planned. Once again, Icahn has urged shareholders to oppose the purchase.
Michael Dell and Silver Lake have so far resisted calls, including those from Dell's special committee, to raise their bid.
Two people with knowledge of the matter have assured this Tuesday that the bidders would stick to their offers, even if the vote is postponed. The sources asked not to be identified because they were not authorized to speak to the media.
The steady stream of reports on shareholder opposition to the purchase continued on Wednesday. CNBC has reported that vanguard Group, the largest U.S. mutual fund manager and which has a 3.7 percent stake in Dell, would vote against the purchase. A Vanguard spokesman declined to comment.
Another key group of minority shareholders, including BlackRock Inc, T. Rowe Price Group Inc, Highfields Capital Management, Pzena Investment Management and Yacktman Asset Management, have already voiced opposition to the purchase or declined to comment on their position reports.
Under the "minority majority" voting provisions, a majority of Dell shareholders, without considering Michael Dell's close to 16 percent stake in the company, must vote in favor of the purchase in order for it to take place.
This means that shareholders, excluding Michael Dell, who collectively own nearly 43 percent of the Round Rock, Texas-based company, must vote to get the purchase approved.
More than 20 percent of Dell's shareholder base, corresponding to the holdings of Icahn and its partner Southeastern Asset Management, are known to oppose the purchase. Others might be planning to vote against or abstain.
