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-- buyout battle heating up along plan shareholder vote on found -- Michael Dell's privatization plan didn't happen today because well you didn't have all the votes he needed to vote has now been pushed back until next Wednesday joining us.
To get into all of this maxim group tech analysts -- Ashok Kumar.
But -- who are you surprised of the developments today -- does this make sense he clearly didn't have enough votes to get his.
Often through so what happens now.
They're logistically it does make sense we estimate about 43% of the shareholders -- to the Michael Dell.
Need to actively vote -- -- -- to pass and now with.
The most job because lives who control about 15% of the floats.
An index in -- funds controlling an equal amount.
We think in all likelihood to that Michael Dell insulate we'll have the necessary votes -- this sort of transaction -- -- to happen.
-- you did you think there's any shots that hill off the offer a little bit to get those extra votes from say.
You know the what's thirteen 65 is the current offer may be a -- -- -- fourteen bucks.
Nothing -- the possibility given that some of the bigger holders like State Street blog run invesco.
And vanguard have.
You are leaving to woods -- -- consortium we think there's likely that a possibility that -- that he could sweeten the deal.
Well listen I mean the deal itself doesn't grossly undervalued the company is that call icon says in fact Carl Icahn says.
To us it seems that no one has less confidence in -- than Dell himself -- -- You know there are those -- say this is a company worth 23 bucks a share.
I think based on nine consensus estimates of about a dollar four -- the next twelve months.
We think this -- is fairly valued in the thirteen to fifteen dollar range which -- current in a public.
Market valuations of peer group companies like Hewlett-Packard seagate and lesson did you tell.
If you look at and a price fixing companies like oracle and IBM and Microsoft -- -- slightly -- month of both.
But I think the thirteen to fifteen is realistic given the near term outlook go for the industry.
But why would the shareholders take this awful -- -- a better one hanging out there.
No I think in terms of -- for operational challenges which have been highlighted by the -- reports.
I think this is the real thing if you look at the -- like on all four.
-- -- debt financing five billion is predicated are dictated upon.
You know they're a slate of directors being nominated a lot of contingencies in play -- Whereas you know this one of the -- off -- -- in terms of risk there upfront risk in terms of investment required and there's no guarantee.
That they will be success of the back and.
Well that's a question of -- is successful and they take this company private and they transform this company.
It -- winning it I mean -- the struggling in a struggling PC market they are trying to sort.
Turn themselves into -- services like company but.
Is that better done in private under Dell's us you have to show ship.
No I think that's very important because -- thing did the consummation and but his six and probability of success.
Is much -- are.
As a private company -- a public company because as a company has pointed out.
The trends in the core PC business -- increasingly negative with Asian suppliers competing.
That -- low single digit operating margins in gaining share.
And enterprise business is business is also under pressure but so was being the monetize and be good -- -- -- -- cloud.
His -- of pressuring -- service of an -- facing business I think.
All of this is best done as a public they're not as a public company but as a private company Oates said of the eyes of other investors.
We'll be following very carefully what happens next Wednesday -- it could come up from maxim group thanks so much for joining us.
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