Dell LBO: fair price?

freddel · Feb 11, 2013

Who would bet that Michael Dell will be forced to improve it offer?

http://online.barrons.com/article/SB50001424052748704852604578297763967710792.html?mod=BOL_twm_da

newwurldmn · Feb 11, 2013

I don't think he will. He has too much control of the stock. Shareholders can take his bid or drown in the sinking ship with him.

Ripley · Feb 11, 2013

Quote from freddel:

Who would bet that Michael Dell will be forced to improve it offer?

http://online.barrons.com/article/SB50001424052748704852604578297763967710792.html?mod=BOL_twm_da

Southeastern is a major bagholder on this stock. Losing $300M or so at the current bid price.

I own a significant amount of stocks as well, but with an average price below ten dollars and holding on to significant profits right at the moment. I'm currently talking to bankers to put in a possible bid myself.

atticus · Feb 11, 2013

DELL will go under within 5 years. Horrific ego-trade by Mr. Dell.

newwurldmn · Feb 11, 2013

You can't blame him for having blinders on. It's not like he can admit defeat and shut the business down. He has to keep fighting.

I dont think it's that crazy of a trade. Given the financing environment I bet he receives some crazy dividends before the banks get caught with defaulted bonds. And if he can transform the company then he could make 20 billion on the re-IPO.

atticus · Feb 11, 2013

Quote from newwurldmn:

You can't blame him for having blinders on. It's not like he can admit defeat and shut the business down. He has to keep fighting.

I dont think it's that crazy of a trade. Given the financing environment I bet he receives some crazy dividends before the banks get caught with defaulted bonds. And if he can transform the company then he could make 20 billion on the re-IPO.

His ego is too big to admit defeat and re-issue. So he'll milk it for what he can and divest what he can when it goes to sh*t. No different that Chrysler.

freddel · Mar 6, 2013

I took one small position @$13.6 (a couple of weeks ago) and I keep buying;

"Activist investor Carl Icahn has built a stake that was likely around 100 million shares in Dell Inc and wants the personal computer maker to conduct a leveraged recapitalization, complicating founder Michael Dell's effort to take the company private, CNBC reported."

http://www.reuters.com/article/2013/03/06/us-dell-icahn-idUSBRE9251CB20130306

newwurldmn · Mar 6, 2013

Well done. Ask a question. Contribute nothing. And then come back a month later telling us what you did.

freddel · Mar 6, 2013

Quote from newwurldmn:

Well come. Ask a question. Contribute nothing. And then come back a month later telling us what you did.

Because no other material informations were available at that time... Just pick up a table of M&A statistics then make a bet and cross your fingers.
Now the situation become clearer that the deal would either improve (75% chances) or collapse (25% chances).

NB: I ,and probably we, would be please if you contribute less to this forum. Learn the basics first, and then come back... Otherwise, it would be an endless sucker game for you and those who are kind enough to read you

newwurldmn · Mar 6, 2013

Quote from freddel:

Because no other material informations were available at that time... Just pick up a table of M&A statistics then make a bet and cross your fingers.
Now the situation become clearer that the deal would either improve (75% chances) or collapse (25% chances).

NB: I ,and probably we, would be please if you contribute less to this forum. Learn the basics first, and then come back... Otherwise, it would be an endless sucker game for you and those who are kind enough to read you

Sure there was. You had an opinion. But it was more about taking rather than a two way conversation.

I would wager that I have much more risk arb and special situations experience than you.

I don't understand your nota bene. It's so non-sensical that maybe your lack of contribution on your own topic is preferable to the rest of us.