As we noted last week, for many Dell shareholders this takeover is really a “takeunder.” Shareholders who have owned the stock for about a year or more are mostly looking at an offer they can easily refuse. It is those investors that Southeastern will target.
Dell has a 45-day “go-shop” period during which the company and its advisers at Evercore may seek a better offer. There is a $180 million breakup fee for a successful competing bid, while any unsuccessful bid will boost the termination fee to $450 million.
Southeastern is pushing for a per share price of $24, well above the current offer. Dell stock has not traded above $24 since the summer of 2008.
Dell’s shares are trading today at $13.75, in a 52-week range of $8.69 to $18.36.