Monday, February 11, 2013

Investors Aim High to Dell but Maybe the Peak of PC Maker in the World is 10 years in the Past.?

Dell Logo
Tampa, Fl -- Probably the days of glory of Dell Inc are more than over, maybe around 2004 when the heap appeared and around 2009 the trend ended but that doesn't mean that the computer corporation major shareholder is in a battle to squeeze the US$24 billion deal to take the technological giant.

The name of the shareholder is the company Southeastern Asset Management which last week's Friday laid that Dell stocks are in a US$24 share, -, and is urging other shareholders to join the opposition as Southeastern is trying to create a weight to Michael Dell and the firm Silver Lake Partners in order to boost the value of the shares in to a game of cat and mouse where they can risk everything to appropriate the computer giant or destroy the negotiations and the share values in the process but there is a problem, the last time Dell stocks where on the aforementioned price was on 2008. 

Dell Headquarters at Round Rock, Texas.
As for today, so far Dell is not shutting down but the company is in the process of reinventing themselves, it's difficult to know how the corporate image as well if there is going to be synergy to develop new products beyond hardware are going to be shown to the public but in a lousy guess maybe Dell is going to follow a similar model to Apple and Microsoft, specially because Microsoft had been involved heavily in the buyout of the company.

The problem with Dell goes in a classical economical crunch as well with the people interest, back in 2002 the company was dominated over a 16% of the market share; even so it withstood the merger of Hewlett Packard and Compaq - being the most heaviest rivals of that time -, their successfully advertising about a "dude getting a Dell" placed the company on the international map and let the founder of the company to position his successor on the map but then as the first decade of the 2000's everything went downhill.

Dell Logo
The problem with the brand was a bad case of mismanagement by trying to match their rivals on several technological aspects as well price match beside the market problems around the "PC's economies," where people can't afford them and companies such as Lenovo, Acer and Asus that have business pacts with such companies as IBM has facilitated their positioning on the global market.

The Memphis investment firm own 8% of Dell's outstanding shares, but familiars with the negotiations are expressing that the firm aren't taking the opposition from Dell lightly. If Dell and its buyers don't secure the shareholders support the deal could cost the buyers more and/or collapse in the process and there is a catch because if the deals falls the shareholders could risk loose their holdings values.

There are another set of problems for Dell by small investment managers discontent from the deal as they acquired their stocks at a much higher prices and it could jeopardize Michael Dell deal because the extent that Southeastern has generated an influence around any possible Dell's allies but the computer company also  has a period of two quarters to find a better deal that will benefit their shareholders.