Dell posts 79% fall in profits amid takeover battle

Dell Some big shareholders are against Michael Dell's bid to buy back the company he founded

Related Stories

Dell has reported a 79% slide in net profit, underlining a fall in personal computers sales as more consumers shift to smartphones and tablets.

The PC maker's net profit fell to $130m (£85m) in the three months to 3 May, on revenue down 2% to $14bn.

Dell is in the middle of a dispute between founder Michael Dell and two of its biggest shareholders.

Mr Dell wants to take the company private, but some investors oppose the plan.

Mr Dell, and private equity group Silver Lake, have offered to buy back the company for $24.4bn, and have pledged to shift the business away from PCs to mobile devices.

But its biggest shareholders - the investor Carl Icahn and Southeastern Asset Management - have argued that the valuation of the company is too cheap, and that Mr Dell's deal is a "giveaway".

Instead, they have proposed to offer additional shares to shareholders and install new management.

In its quarterly results, Dell said that revenue from new technologies, services and software, rose 12% to $5.5bn. That was in contrast to PC sales, which fell 9%.

The company did not issue a profit guidance for the second quarter due to the ongoing dispute. It has created a special committee of the board to study the private equity deal and alternative bids.

More on This Story

Related Stories

More Business stories

RSS

Features & Analysis

  • Prostitute in red light district in Seoul, South KoreaSex for soldiers

    How Korea helped prostitutes work near US military bases


  • LuckyDumped

    The rubbish collector left on the scrap heap as his city cleans up


  • Walmart employees and supporters block off a major intersection near the Walton Family Foundation to stage a protest calling for $15 an hour and consistent full-time work in downtown Washington October 16, 2014. Black mark

    Wal-Mart workers revolt against the annual shopping bonanza


  • Jennifer Lawrence in The Hunger Games: Mockingjay - Part 1More than 'Games'

    Fact and fiction blur in Mockingjay film.


Elsewhere on the BBC

  • UnderwaterHidden depths

    How do you explore the bottom of the ocean? BBC Future finds out

Programmes

  • All-inclusive holidaysThe Travel Show Watch

    With all-inclusive holidays seeing a resurgence are local trades missing out to big resorts?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.