In a note sent by Michael Dell to the company’s employees on Monday, Dell Inc. (NASDAQ:DELL) put forward his reasons for his intended buyout of the company with private equity firm Silver Lake Partners.
Some of the matters discussed in the memo includes stronger focus on emerging markets, heavier investment in the tablet and PC businesses, and R&D investment and increased sales staff. Dell Inc. (NASDAQ:DELL) also mentioned his trip to China and mentioned that the country is “a nation ripe with opportunity” and an “enthusiastic partner”, he also said that he hosted a dinner for 100 high-level government and business leaders.
Dell’s remarks about China are in complete contrasts to the ones faced by the Apple. The iPhone maker recently issued a public apology concerning its warranty program after it was heavily criticized by the local media.
The note from Dell provides a summary of a few important points of a 274-page preliminary proxy statement. The objective of the proxy statement was to inform the company’s shareholders about the particulars of the $24.4 billion buyout proposal and why it is beneficial for the company. The proxy statement also includes the grim forecast about the future of the PC industry along with notes on the future of the company’s founder and current CEO.
Along with the opportunities, Dell Inc. (NASDAQ:DELL) also warned in its proxy statement that with too much debt it is dangerous to remain a public company considering the grim profit outlook. Dell also cautioned that he views the proposals from Blackstone Group (NYSE:BX) and billionaire investor Carl Icahn as fraught with risk.
The memo offers more concrete possibilities and solutions than the proxy statement, on the company’s products and markets where it plans to grow.
Dell Inc. (NASDAQ:DELL) closing words in memo said, “There is a lot of work to be done, but if we do it correctly it’s a great long-term opportunity. As we move forward, I couldn’t be more confident in the quality of our leadership team and in all of you – 110,000 of our industry’s most experienced, talented and committed team members.” He further added that he is more enthusiastic about Dell than ever and that their best days are still ahead.”
