Breaking News from CNBC's David Faber: Talks Between Michael Dell / Silver Lake & Dell Special Committee Continue - Sources
WHEN: TODAY, THURSDAY, AUGUST 1, 2013
WHERE: CNBC'S "FAST MONEY"
Following is the unofficial transcript of breaking news from CNBC's David Faber. All references must be sourced to CNBC.
DAVID FABER: OF COURSE TOMORROW MORNING IS EXPECTED TO BE A VOTE ON THE FATE OF THE DELL DEAL, BUT THE TALKS I CAN TELL YOU BETWEEN THE DELL SPECIAL COMMITTEE AND MICHAEL DELL AND HIS PARTNER SILVER LAKE CONTINUING TONIGHT AND THE FOCUS OF THESE TALKS IS ON OBTAINING A HIGHER BID FOR MICHAEL DELL AND SILVER LAKE IN RETURN FOR THAT CHANGE IN THE VOTING STANDARD THAT THEY FAILED TO GET WITH THEIR $13.75 A SHARE BID. NOW SOURCES CLOSE TO THE SITUATION TELL ME THE TALKS ARE, OR THE SITUATION IS FLUID. TENUOUS IF YOU WILL. BUT THEY DO SAY PROGRESS IS BEING MADE. IT IS UNCLEAR WHETHER THEY WILL GET THERE AND WHAT THAT BID WILL BE. WILL IT BE EVEN FIVE CENTS, $13.80, OR PERHAPS MORE THAN THAT THAT THE SPECIAL COMMITTEE WILL FEEL IT IS JUSTIFIED IN ELIMINATING OR CHANGING THE VOTING STANDARD SO THAT IT WOULD MAKE IT VERY VERY EASY FOR MICHAEL DELL AND SILVER LAKE TO WIN THAT VOTE.WE SHALL SEE WHAT HAPPENS AT THIS POINT. ALSO UNCLEAR IF IN FACT THEY DO GET THAT HIGHER CONSIDERATION. WOULD IT SIMPLY BE A STRAIGHT CASH BUMP OR WOULD THERE BE SOME SORT OF BACK END COMPONENT. PERHAPS SOME SORT OF A DIVIDEND.AGAIN, MANY OF THOSE THINGS UNCLEAR AND OF COURSE, STILL BEING DISCUSSED.NOTHING SAYS IT IS GOING TO HAPPEN, BUT IF IN FACT THIS VOTE IS HELD TOMORROW, MOST PEOPLE BELIEVE MICHAEL DELL AND SILVER LAKE WILL FAIL TO CLOSE ON THE DEAL THAT THEY STARTED WORKING ON ALMOST A YEAR AGO. SO AGAIN, SOURCES CLOSE TO THE SITUATION SAY THE FOCUS NOW BETWEEN THE SPECIAL COMMITTEE AND MICHAEL DELL AND SILVER LAKE IS ON A HIGHER BID FROM THEM IN RETURN FOR A CHANGE IN THAT VOTING STANDARD WHICH WOULD ALMOST ENSURE THAT THEY GET THEIR DEAL DONE.
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