Dell Inc. (NASDAQ:DELL) postponed a shareholder meeting to vote on Michael Dell’s $24.4 billion buyout plan, with an eye on soliciting more proxy votes.
Nadia Damouni and Anna Driver of Bloomberg feel Michael Dell’s buyout plan failed to secure the required 735 million shareholder votes.
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Citing known sources, the Bloomberg report disclosed the $13.65-per-share bid from Michael Dell and Silver Lake fell short of the target by 150 million shares as of early Thursday morning.
The postponement provides a temporary relief to Dell Inc. (NASDAQ:DELL) shareholders as earlier reports suggested Michael Dell predicting Dell Inc’s share falling to $7.90 in the event of the LBO voted down.
Echoing investor’s sentiment, Dell Inc. (NASDAQ:DELL) shares climbed 2 percent to $13.15, still falling short of $13.65 that Michael Dell and Silver Lake are offering Dell Inc shareholders.
More investors voted in favor of the buyout proposal
Nadia Damouni and Anna Driver of Bloomberg report two major investors Vanguard and BlackRock who originally opposed Michael Dell’s $24.4 billion buyout proposal have ultimately switched sides.
State Street Corporation (NYSE:STT), The Bank of New York Mellon Corporation (NYSE:BK) and Invesco Ltd. (NYSE:IVZ) also voted in favor of the buyout deal on the eve of the shareholder’s meeting, according to Bloomberg citing known sources. These investors were earlier considered as swing votes.
However, despite the recent support, Michael Dell and partner Silver Lake’s proposal fell short of the required votes.
Largest buyout plan since financial crisis
Earlier this year, founder and CEO Michael Dell made the original buyout offer for his company. It involves paying Dell Inc. (NASDAQ:DELL) shareholders $13.65 per share and then taking the PC maker private. The buyout proposal from Michael Dell and the private-equity firm Silver Lake Partners received support from the influential shareholder advisory firm Institutional Shareholder Services.
This proposal is considered the largest buyout since the financial crisis.
But for the 8 a.m. CT adjournment at Dell Inc. (NASDAQ:DELL)’s headquarters in Texas today, it is likely the outcome could have gone in favor of Carl Icahn.