By Ian Sherr
Dell Inc. (DELL) said it doesn't expect any job cuts as part of
the company's previously announced plans to go private.
The Round Rock, Texas, company provided the disclosure, along
with other details, in a filing late Tuesday with the Securities
and Exchange Commission. As part of the filing, Dell released a
cache of emails, documents and a conference-call transcript in
which the company discussed the move with its employees.
As reported, Dell said it plans to sell itself to a group of
investors, headed by company founder Michael Dell, Silver Lake
Partners and Microsoft Corp. (MSFT).
In the filing, Dell didn't disclose details of the deal's
funding arrangements, including the contribution from Silver Lake
Partners or Mr. Dell's investment firm; the amount of debt the
parties aim to raise; or the amount of cash on hand they plan to
tap. Mr. Dell's contributions will make him the majority owner of
the privately-held company, according to the filing.
The company, though, did reaffirm its commitment to the PC
business, saying it "is critical to our financial and cash flow
models."
According to a conference call transcript in the filing, Larry
Tu, the company's general counsel, asked Steve Price, head of human
resources, "Will any jobs be eliminated as a result of this
transaction?"
"We do not anticipate job eliminations as a result of the
proposed transaction," Mr. Price responded, adding that Dell plans
to "accelerate" its "long-term growth plan and transformation." The
company added that it planned to reduce spending by $2 billion.
Dell stressed that employees will continue to work for the same
manager in the same building and serve the same customers. In
addition, the company reassured employees that merit-based raises
for the fiscal 2013 and 2014 years would remain intact.
The company also confirmed that it had considered spinoffs or
selling itself piecemeal, adding that staying one entity is "the
best outcome for shareholders."
"End-User Computing and Dell Financial Services continue to be
an important element of our strategy," Brian Gladden, the company's
chief financial officer, said in the call's transcript.
--Ben Worthen contributed to this article.
Write to Ian Sherr at ian.sherr@dowjones.com
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