Underlying the premise of Mr. Dell's bid is his contention that the changes needed to fix the company would upset public shareholders, further hurting its stock price.
Caremark Rx, the target of a $25.7 billion takeover bid from CVS, was ordered by a Delaware judge to disclose more information to shareholders, further delaying a vote on the deal.
Forcing institutions to raise capital, be it private or public, at panic-driven fire-sale prices threatens enormous dilutions to already shell-shocked shareholders, further exacerbating uncertainty and fueling the downward spiral.
Despite such concerns, the Dell board used both exclusivity and a go-shop in structuring the sale process, although it did add some frills to try to protect shareholders further.
Andrew J. Schindler, chairman and chief executive of R. J. Reynolds Tobacco Holdings, parent of the tobacco company, said, "The acquisition provides additional opportunities to enhance shareholder value, further strengthen our balance sheet and invest in our business".
Since June 2000 Rite Aid has increased its share base 56%; Miller may have to issue even more new stock to pay for a $155 million shareholder settlement, further diluting the stock.
John J. Castellani, president of the Business Roundtable, said the organization supported the proposals for greater disclosure over the nomination process and communications from shareholders, but further work remained on the proposal for shareholder nominations of board members.
If all those funds are needed to shore up the firm, benefits for shareholders are further postponed.
After a conference call with analysts, executives began holding conversations with individual Avon shareholders to further press their case.
"Channel takes the view that it is in the public interest, as well as the interest of Channel Television and its shareholders, that further investigation must take place.
A debt-for-equity swap with the banks that financed the project is more likely, but would dilute the shareholders' stake further.
