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Dell CEO agreed to lower shares' value to push $30.15b buyout

Published on Feb 15, 2013 2:03 AM

SAN FRANCISCO (REUTERS) - Dell Inc Chief Executive Michael Dell, aiming to clinch a US$24.4 billion (S$30.15 billion) deal to take the No. 3 PC maker private, agreed to value his 16-per-cent stake in the company at about 2 per cent below the price offered to other shareholders, company filings on Thursday showed.

The founder, who informed his board in August of his intention to remove the struggling company from Wall Street's scrutiny, agreed after extensive negotiations that his equity stake would be valued at US$13.36 a share, versus the US$13.65 offered eventually.

Negotiations with Silver Lake kicked off in October. Dell revealed that the private equity firm raised its proposed offer price at least once during ensuing discussions.

"To facilitate a price increase by Silver Lake, Mr Dell and related persons agreed that their shares to be rolled over in the proposed transaction would be valued only at US$13.36 per share as opposed to the US$13.65 price offered to the company's unaffiliated stockholders," the filing read.

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