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DELL Goes Private, Who is the Winner?

Tuesday Feb 4 2013

Barry Rtiholtz notes that DELL has spent as much on stock buy backs as it has made lately.

Another Article notes, Shareholders Finally Out of Their Misery.

Please read these articles for class. There is much to learn in terminology. There is also much to discuss in terms of ethics, who was Michael Dell batting for. Be prepared to discuss the history of Dell, the stock price history, and what value is finally placed on the company going private.

Ethically

Who are the stakeholders?

The CEO and Chairman of the Board are primarily responsible to who?

How have shareholders fared the last few years?

Is the final price of I believe $13.60, what the company is worth, fair?  Usually a buy out commands a higher price, and admittedly the stock was trading at ten bucks two weeks ago.

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2 responses to “DELL Goes Private, Who is the Winner?”

  1. cary kingsley Avatar
    cary kingsley

    The winners are those that sold at $40 and those who are in on taking it private. the losers are those that “hoped” for a rebound in price. When your investment stragy is based on “hope” and “Feelgood” corp releases you pretty much deserve to lose every single penny.

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  2. Brisa Flores Avatar
    Brisa Flores

    I think the big winner here is ofcourse Mr. Dell. He took out alot of money (about $17 Billion) from the company over the years and now comes back and buys the company back at a bargain of $13.65 per share, when according to it’s biggest shareholder Southeastern Asset Management, it is worth at least $24. “the deal appears to be an effort to acquire Dell at a substantial discount at the expense of the public shareholders.” So not only do the shareholders lose money but they also lose out on the opportunity to make a gain if the company does make it out again.

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