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Michael Dell Takes His Buyout Case to Employees

Monday, 1 Apr 2013 | 7:02 PM ET
Michael Dell
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Michael Dell

Michael Dell sent a message to Dell employees Monday apparently making his case for his intended buyout of the company with private equity firm Silver Lake Partners.

The memo summarizes selected points from a 274-page preliminary proxy statement to inform Dell shareholders of how a $24.4 billion buyout proposal was put together, and why it is the best of the alternatives the company's board had considered.

(Read More: Dell Warns of Risks of Remaining a Public Company)

Among the priorities highlighted: R&D investment, increased sales staff, stronger focus on emerging markets and heavier investment in the tablet and PC businesses.

Dell also offered highlights of a trip to China, "a nation ripe with opportunity" and an "enthusiastic partner." He said he hosted a gala dinner for 100 high-level government and business leaders.

That contrasts with Apple's recent difficulties in China, where it has issued a public apology about its warranty program after a barrage of criticism in state media.

(Read More: Apple Apologizes to Chinese Consumers for Warranty Flub)

Dell warned in its proxy statement Friday that it would be dangerous to take on a lot of debt and remain a public company, given its worsening profit outlook, suggesting it views proposals from Blackstone Group and billionaire investor Carl Icahn as fraught with risk.

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