Thursday, August 01, 2013
The Dell shareholder fight has gone on so long -- a year -- that one wonders if management has any credibility left. Dell's sales and earnings have eroded and market share has declined. One suspects Michael Dell is spending so much time in the shareholder battle that he has had less time to manage the company. If he loses the fight -- and there is good reason to believe he might -- his personal authority will be damaged with the board and probably with his employees as well. Should he then step down? He and his affiliates own 15 percent of the shares so there is reason to believe he can maintain his position, but to what effect? There is no good outcome at this point. The company needs a turnaround, and maybe by going private it can achieve that, but there is no guarantee that Mr. Dell can do it nor much chance that his shareholders will allow him to proceed. How does one do PR in a situation like this?