Loan

Yesterday the rumors about Michael Dell taking his company private were put to rest. It’s happening, and the deal is worth $24.4 billion. 

I’ve seen a few comments written about how Michael Dell is robbing shareholders. I don’t think that’s true at all. The stock was trading around $11 prior to rumors of a management buyout. The deal gives shareholders $13.65 per share, which is a decent premium. Obviously some shareholders may think they’re getting ripped off because the stock was already close to the buyout price before the deal was officially announced. But if the deal evaporated, the stock would surely nosedive. This logic escapes some people. Nothing you can do about that.