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Dell Buyout Won’t Pass According to Reuters

According to Reuters, Michael Dell’s offer to take Dell private would not pass.

On Thursday, major shareholders are expected to vote on owner Michael Dell’s offer to take Dell private. Activist investor, Carl Icahn has been in a long battle with the company that would include acquiring the company and keeping it public.

What looked like a sure win for Michael Dell has now gone against him as Icahn has sweetened the offer. There are three outcomes that could take place Thursday:

1) Michael Dell’s offer could gain shareholder approval. If that happens, Icahn has vowed to fight it in court.

2) The offer could be voted down- Icahn would then start a battle to remove the board and get his own slate of directors voted on to the board.

3) Dell could postpone the vote.

The latter is seeming increasingly likely as news that the vote is 150 million votes short has crossed the wires.

Icahn was at CNBC’s Delivering Alpha conference on Wednesday and said that Dell’s board was unlike any he has worked with in the past. He thinks that postponing the vote is a symptom of what is wrong with corporate governance in the United States.

[stock-tools exchange="NASDAQ" symbol="DELL" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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