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Tuesday, March 5, 2013

Top shareholder demands Dell open books as buyout looms, (NASDAQ: DELL)

Dell Inc's largest external shareholder is demanding that the PC maker open its books, signaling it could become more active in opposing founder Michael Dell's proposal to take the company private for more than $24 billion.Southeastern Asset Management, the largest of a clutch of investors who say the takeover proposed by Dell and private-equity house Silver Lake sharply undervalues the world's No. 3 PC maker, called for "straightforward information" on behalf of its top client, Longleaf Partners Fund.The Memphis-based firm run by activist investor Mason Hawkins also criticized the silence of Dell executives about the deal during a February earnings call. In a letter to Dell included with a Tuesday filing, the firm accused the company of emphasizing a decline in PC sales, while ignoring growth in its IT services division, to justify an inadequate buyout price."Under the current buyout proposal, management and Silver Lake stand to receive all of the future upside, while denying shareholders, who have paid to reposition the company, the opportunity to reap the rewards of our investment," Southeastern said in its filing.

Dell, Inc. (Dell) is a global information technology company that offers its customers a range of solutions and services delivered directly by Dell and through other distribution channels. Shares of DELL traded higher by 0.5% or $0.07/share to $14.07. In the past year, the shares have traded as low as $8.69 and as high as $17.46. On average, 36612300 shares of DELL exchange hands on a given day and today's volume is recorded at 14219333.