Justbefore the public learned about the potential lbo of del

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Justbefore the public learned about the potential LBO of Dell, Inc., the company'sstock price was trading for $10 per share. What is the size of the premium thatSilver Lake and Michael Dell were offering public shareholders? In July 2013,an independent firm that advises institutional investors on how they shouldcast their votes at shareholders meetings issued a letter backing MichaelDell's offer. The firm argued that in the LBO transaction, shareholders wouldreceive a premium "with certainty," whereas with Carl Icahn's offer,it was uncertain whether the value of the company would ultimately be higherthan the proposed LBO price. If you were a Dell shareholder, how would thatadvice affect your vote?<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> 

Reference no: EM13753141

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