The company says that it brought in a "prominent management consultant" to help it determine what to do, and everyone agreed going private was the best move.
(Credit: Dell)
Despite growing concern from major shareholders, Dell believes its decision to go private is the best one.
In Securities and exchange,, Dell reported that it "considered an array of strategic alternatives." The company also hired a "prominent management consultant to help it assess the Company's strategic position." Those alternatives, along with the consultant's assessment, led Dell down the path of going private.
"Based on that work, the Board concluded that the proposed all-cash transaction is in the best interests of stockholders," Dell wrote in its filing. "The transaction offers an attractive and immediate premium for stockholders and shifts the risks facing the business to the buyer group. In addition, and importantly, the go-shop process provides stockholders an opportunity to determine if there are alternatives that are superior to the present offer."
Dell's SEC filling today to the kerfuffle that erupted on Friday when Southeastern Asset Management, which owns 8.5 percent of Dell's shares and is the company's largest outside shareholder, said that it opposed the computer maker's plans to go private. In a letter sent to the Dell board, Southeastern said that the deal "grossly undervalues the company."
Reuters reported on Friday that Southeastern might not be alone. An unnamed source told Reuters that Harris Associates, Yacktman Asset Management, and Pzena Investment Management, which together own 3.3 percent of Dell's shares, might also be against the deal.
Despite Dell's attempts today to quell unrest, this might get worse before it gets better. Southeastern said in its letter than it's willing to launch a proxy fight against Dell to stop its action.
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