The letter from Southeastern said the deal "represents an opportunistically timed bid to take the company private at a valuation far below Dell's intrinsic value."
Opportunistic Timing Alleged
The letter from Southeastern said the deal "represents an opportunistically timed bid to take the company private at a valuation far below Dell's intrinsic value."
Southeastern said the value of Dell's assets and cash on hand suggests "a total corporate value approaching $24 per share" without taking into account Dell's growth prospects.
"By any objective measure, [the buyout offer] is woefully inadequate," the letter said.
The buyout deal calls for a "go shop" period to allow shareholders to seek a better offer.
Board members could implement a different plan, including a "Dutch auction" that would allow shareholders to sell back their stock at various prices, according to the letter.
It said another possibility that has not been considered would be to sell some of Dell's business units separately.
Go Shop Process is “Not Sufficient”
"We are concerned that given the participation of Michael Dell in this transaction, that a traditional go shop process is not sufficient to ensure that the company receives superior offers," the letter said.
The buyout plan also calls for a $2 billion loan from Microsoft along with financing from by Bank of America-Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets.
Analysts have said the deal may give the company a chance to regain some footing in a market in which smartphones and tablets are overtaking laptop and desktop computers.
Copyright Agence France-Presse, 2013
