Michael Dell to be 'aggressive' if buyout succeeds
2013 Personal computer industry pioneer Michael Dell would "invest
for growth" and compete aggressively in new markets if his plan to take
the company he founded private succeeds, according to a new memo.
The company founder, in a message to Dell employees available Tuesday
in a document filed with the Securities and Exchange Commission, said he
has plans that "will position Dell for long-term success." The document
was released as a special committee set up by Texas-based Dell evaluates
two competing proposals to the one led by Michael Dell to take the firm
private in a $24.4 billion deal.
Under his plan, Dell would hire more sales personnel and "invest for
growth in the PC and tablet business... to enhance our ability to
compete," the memo said.
"While Dell's strategy in the PC business has been to maximize gross
margins, following the transaction, we expect to focus instead on
maximizing revenue and cash flow growth with the goal of improving
long-term sales and competitive positioning."
Additionally, a new Dell would "compete aggressively in emerging
countries," according to the memo, with investments planned in the BRIC
countries -- Brazil, Russia, India and China.
"In addition, we expect to expand aggressively in other parts of
Asia, Latin and South America, Central and Eastern Europe, the Middle
East and Africa," he said in the document.
Dell also said he plans more efforts in "end-to-end information
technology solutions" including software, cloud computing, consulting
and managed security services.
"We see a lot of new work that needs to be done, but also an
extraordinary long-term opportunity if we get it right," he said.
"I am more energized for the future of Dell than ever. Together, we
have built an amazing company and our best days are still ahead." Last
week, the special committee renewed its backing for the buyout but said
it would continue talks on alternate bids. The panel, which now faces an
apparent bidding war, said the offers from billionaire corporate raider
Carl Icahn and investment fund Blackstone Group had not yet been
finalized, so it was not clear if they were better for shareholders. |