Michael Dell's Conflict of Interest Will Hurt Shareholders
To that end, I don't believe it serves the interest of shareholders that Michael Dell remains in his CEO role, at least not until the Sept. 12 vote occurs. There is an obvious conflict of interest here. That this divergence has not already been raised is surprising. I don't believe Michael Dell wants the company to show any signs of life until he and Silver Lake Partners, get what they want. It's human nature.
Look, I don't have a dog in the fight. But if Michael Dell believes he can fix Dell's struggles by going private, so be it. From my vantage point, though, I believe that any route Dell is able take from here is much better than the status quo. But here's the thing; I also can't ignore the progress that rival Hewlett-Packard (HPQ) has made under Meg Whitman, albeit modest improvements.
Let's not also discount how well Lenovo (LNVGY) seems to be adapting to the global PC decline while the company has begun a meaningful transition into its own line of mobile devices. There are now rumors that Lenovo may buy BlackBerry, which makes plenty of sense.
In that regard, Dell gets no sympathy from me. Michael Dell wants take his ball and go home. Everyone wants to go out on his or her own terms, and that's fine. But let's not make it about "what's best for Dell." He's not riding off into the sunset. We're beyond that now. What's best for shareholders, in the meantime, is that he removes himself to preserve the integrity of this whole process.At the time of publication, the author was long AAPL. Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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