Dell Issues $12 Billion In Shares, Reorgs Subsidiaries

Dell said Wednesday it has issued $12 billion in unregistered securities to reorganize some of its subsidiaries -- part of an effort to streamline overseas operations in areas it has deemed essential to its growth.

In a filing with the U.S. Securities and Exchange Commission, the Round Rock, Texas-based company said the move was aimed at providing "various financial, operational and tax efficiencies," and took place Dec. 28. The transactions involved issuing 475,435,817 shares valued at $12 billion to one of its subsidiaries on Dec. 28, when the moves took place.

"As part of the restructuring, the subsidiary used these shares to acquire controlling interest in another wholly-owned Dell subsidiary," the company said in the filing. Dell will still be the ultimate owner of all the subsidiaries. Dell will still be the primary owner of all the subsidiaries.

Bob Pearson, a Dell spokesman, said the moves were aimed at improving efficiencies of units based largely in Asia.

"What's happening at Dell is a lot of our suppliers are in Asia," the spokesman said. "A lot of our manufacturing capacity is in Asia. We have two plants now in China. We have another one we're just about to build in India. We're globalizing our headquarters."

The reorganization of its subsidiaries will increase the importance of Dell's Singapore operations, which has stood as Dell's commercial hub for Asia, the spokesman said. The $12 billion in new shares will not dilute Dell's stock because it is not on the open market for sale, he said.

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