Author Topic: DELL - Dell Inc.  (Read 156627 times)

adesigar

  • Sr. Member
  • ****
  • Posts: 437
Re: DELL - Dell Inc.
« Reply #630 on: May 31, 2016, 06:54:38 PM »
Judge Finds Michael Dell, Silver Lake Underpaid for Dell in 2013

http://www.wsj.com/articles/judge-finds-michael-dell-silver-lake-underpaid-for-dell-in-2013-1464706851

But according to the article most wont get compensated. Does anyone know why?

Cant they just send this guy to jail and give me my shares back?

People that voted against will get paid. Most voted for the deal.

Seriously? Awesome, I actually voted my 345 shares here for principle (against of course). Will my broker contact me?

This is from the article

Quote
Tuesday’s ruling could have been far costlier for Mr. Dell and Silver Lake. Earlier this month, a judge disqualified about 30 million shares held by  T. Rowe Price  Group Inc. because the mutual fund giant, one of the deal’s most vocal opponents, mistakenly voted its shares in favor of the buyout. To be eligible for the court-ordered price bump, investors must have voted against the transaction.

The mix-up, which T. Rowe has blamed on the complexities of the proxy voting system, means it will miss out on about $190 million, including interest.



wachtwoord

  • Hero Member
  • *****
  • Posts: 1367
Re: DELL - Dell Inc.
« Reply #631 on: June 01, 2016, 01:33:32 AM »
I believe my shares will not be eligible as I did not seek appraisal (as the costs for doing so for 345 shares was prohibitive).

http://finance.yahoo.com/news/u-court-rules-dells-24-150120537.html

Quote
With interest, investors who sought appraisal will collect about $20.84 per share.

So that's $2.5k I'm losing out on. In retrospect spending a few hundred dollars for appraisal would have bene better. I re-contacted the appraisal group to make sure.

Edit:

Another article has different wording again: http://www.pcworld.com/article/3077535/dells-private-buyout-shortchanged-shareholders-court-rules.html

Quote
The decision comes in response to a lawsuit brought by a number of Dell investors who felt shortchanged by the deal. Through what's known as an appraisal suit, they asked the Chancery Court to determine the fair value of their shares at the time.

Only shareholders who voted against the deal are eligible for compensation, which reportedly will total about $35 million. Owners of about 5.5 million shares reportedly were affected by the decision.

So as of yet it's unclear. Do you need both to have sought appraisal AND voted against the merger, or is simply voting against sufficient? I'll keep you up to date.
« Last Edit: June 01, 2016, 01:41:48 AM by wachtwoord »
"Beware of he who would deny you access to information, for in his heart he dreams himself your master"

dontdodebt

  • Newbie
  • *
  • Posts: 19
Re: DELL - Dell Inc.
« Reply #632 on: June 01, 2016, 01:53:54 AM »
And a non-vote does not count as a vote against? (Something else seems very illogical, I have to admit)

wachtwoord

  • Hero Member
  • *****
  • Posts: 1367
Re: DELL - Dell Inc.
« Reply #633 on: June 01, 2016, 03:22:09 AM »
And a non-vote does not count as a vote against? (Something else seems very illogical, I have to admit)

Non-votes are automatically voted in favor because management advised that. (at least those were the rules at the time, non-votes are abstained now as far as I know).
"Beware of he who would deny you access to information, for in his heart he dreams himself your master"

Tim Eriksen

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 753
Re: DELL - Dell Inc.
« Reply #634 on: June 01, 2016, 08:03:29 AM »
For simplicity, you have to have voted against and sought appraisal.  That was a key issue in this case because T Rowe Price inadvertently voted in favor of the deal when the fund managers instructed them to vote against.  Even though they sought appraisal their shares were thrown out of the case a few weeks ago.   You also would not have had use of the money during the process as shares in appraisal are not bought out at closing.  Of course they are eligible for I believe a 6% annual interest on that amount.     

wachtwoord

  • Hero Member
  • *****
  • Posts: 1367
Re: DELL - Dell Inc.
« Reply #635 on: June 01, 2016, 08:55:58 AM »
For simplicity, you have to have voted against and sought appraisal.  That was a key issue in this case because T Rowe Price inadvertently voted in favor of the deal when the fund managers instructed them to vote against.  Even though they sought appraisal their shares were thrown out of the case a few weeks ago.   You also would not have had use of the money during the process as shares in appraisal are not bought out at closing.  Of course they are eligible for I believe a 6% annual interest on that amount.     

Thanks for the information. It's what I was afraid off.

It's not possible to retroactively seek appraisal with the verdict in hand right?
"Beware of he who would deny you access to information, for in his heart he dreams himself your master"