Thursday 3 June 2010

Dell CEO considers the privatization of management after delisting the company


June 4 news, Dell CEO Michael recently said that make the company private.

Yesterday, Michael in New York Sanford - Bernstein (Sanford C. Bernstein & Co) meeting revealed this intention, but he declined to say why to do so. At the meeting, Bernstein teacher Toni Sacconaghi asked Michael Dell if they would consider privatization, he replied: "Yes." Michael said to have taken "every intention" continuing Dell Inspiron 1545 battery company operations, but failed to achieve growth plans, he added: "determined to continue managing the company a long time."

45-year-old Michael said: "This transformation is not complete. If I had to rate it had to give a 'not completely' level."

The so-called privatization of listed companies, is a special kind of capital market M & A operations; and other M & A operations biggest difference is that its objective is the acquisition of listed companies were delisted from the public companies into private companies. Popular is that the controlling shareholders to minority shareholders to buy back all your shares in the hands of, and expand existing share the Dell Studio 1537 battery, the company eventually delisting.

According to Reuter’s data, Michael Dell is the company's largest single shareholder, holding 11.6%. In 1984 he founded the company in the University of Texas, using direct sales computer. Since then Dell Studio 1537 battery has grown rapidly, once the largest computer manufacturers. But in recent years not only behind Hewlett-Packard, Acer and more are being exceeded. Dell 2004 resigned CEO, 2007 about returning to the CEO post.

He then conducted more than 10 acquisitions, layoffs, so the Dell Inspiron 1545 battery is more diversified. However, due to the rising costs of memory and liquid crystal displays, the company for two consecutive quarterly decline in gross margin.

Michael said components market "is still very tight," hopelessness still increase early next year, he reiterated that Dell laptop batteries will continue to be for the acquisition, but the bulk purchase will be smaller, the company will continue to hire sales staff, particularly in servers and storage in the field of professional staff.

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