Just because founder and Chief Executive Officer Michael Dell and the private equity firm Silver Lake Partners reached a deal to take Dell (NASDAQ:DELL) private does not mean the company’s investors are going to find the terms agreeable.
Dell’s largest independent shareholder, Southeastern Asset Management, along with three other investors have objected to the deal, citing the too-low-offer of $13.65 per share as the reason for their opposition, reported Reuters on Monday.
But the discontent is not unexpected; ever since the possibility of a leveraged buyout was rumored, pundits and investors alike have struggled to define Dell’s value, an essential element for such a transaction.
A primary concern for potential buyout partners was whether Dell’s shrinking personal computer business could be resurrected. The company has been falling behind in the industry it once dominated, as competition from other personal computer companies and the transition away from desktop computing towards increased smartphone and tablet use has eroded the business…