Some of Dell Inc.'s (DELL) biggest institutional shareholders
are expected to vote against a proposed buyout of the computer
maker, people familiar with the matter said, a blow for deal
proponents who felt that this group of investors would likely favor
a deal.
Vanguard Group, State Street Corp. (STT) and BlackRock Inc.
(BLK), which collectively hold nearly an 11.4% stake in the
computer maker as of the latest public filings have signaled they
will oppose the deal, one of the people said. Representatives of
Vanguard and State Street declined to comment, and a representative
of BlackRock didn't immediately respond to a request for
comment.
That opposition would bring the count of known planned negative
votes to close to 30% of Dell shareholders.
The takeover agreement requires the majority of shareholders
outside of Michael Dell and his affiliates, who hold a combined
approximately 16% of the shares, to vote for the deal. That means
shareholders with just over 42% of shares need to vote yes for the
deal to pass.
Dell founder Michael Dell and private-equity firm Silver Lake
Partners struck a deal to take Dell private for $13.65 a share. A
vote on the deal is scheduled for Thursday but will likely be
delayed to give the buyout group and company more time to convince
shareholders to vote for the deal, people familiar with discussions
said Wednesday, although they cautioned that no decision had been
made.
--Shira Ovide contributed to this article.
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