In a Securities and Exchange Commission filing, Dell said it "considered an array of strategic alternatives," as well as hiring a "prominent management consultant to help it assess the Company's strategic position." Said alternatives and the consultant's assessment ultimately saw Dell choosing to go private in a $24.4 billion deal, which was spearheaded by co-founder Michael Dell (who has issued an open letter to consumers on the deal), Silver Lake and Microsoft.
"Based on that work, the Board concluded that the proposed all-cash transaction is in the best interests of stockholders," Dell's filing reads. "The transaction offers an attractive and immediate premium for stockholders and shifts the risks facing the business to the buyer group. In addition, and importantly, the go-shop process provides stockholders an opportunity to determine if there are alternatives that are superior to the present offer."
In a letter sent to the Dell board, Southeastern Asset Management, which owns 8.5 percent of Dell's shares and is consequently the firm's largest outside shareholder, stated that the deal "grossly undervalues the company." The former said it's willing to launch a proxy fight in order stop the deal.
Reuters' sources said that Harris Associates, Yacktman Asset Management and Pzena Investment Management, which cumulatively own 3.3 percent of Dell's shares, are also against the deal.