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Wrong again. There's tax implications that prevent him from just surrendering his shares in the company in exchange for a large equity position in a private co
by bluedevil2k 14y ago
Wrong again. There's tax implications that prevent him from just surrendering his shares in the company in exchange for a large equity position in a private company.
- alberth 14y agoIf JumpCrisscross is wrong, then what does that statement mean in the article that states "Michael S. Dell will contribute his stake [of DELL] of roughly 14 percent toward the transaction.."
- JumpCrisscross 14y agoI do not believe I suggested he would be surrendering his shares, but rather, that he will not be taking a cash disbursement. I believe that he will take a distribution of the OpCo's (thereby stripping the HoldCo's) to be subsumed by the local NewCo, but given the complexity of the deal I wouldn't take too many guesses. I avoided speculating on the transaction mechanics given that this is Hacker News and not FT Alphaville's Long Room - sorry if that caused confusion.