Future Of Dell's $24.4B Buyout Plan Seems Uncertain As Shareholders Demand A Higher Bid

 @AlexCKaufman
on July 18 2013 2:20 PM
Dell
Dell Inc Chairman and CEO Michael Dell smiles during the Web 2.0 Summit in San Francisco Oct. 18, 2011. Dell Inc.'s future remains uncertain as the CEO races on Thursday to woo shareholders to accept his $24.4 billion proposal to take the aging computer giant private. Reuters

Dell Inc.'s (Nasdaq:DELL) future remains uncertain as founder Michael Dell races on Thursday to woo shareholders to accept his $24.4 billion proposal to take the aging computer giant private.

Some shareholders considered Dell's bid too low, possibly forcing Dell's chairman and chief executive to postpone the vote deadline to give him and private equity firm Silver Lake Management LLC more time to convince naysayers that $13.65 per share is a fair bid, Bloomberg News reports.

Angelo Zino, an analyst at Standard & Poor's Financial Services, said bolstering the offer to $14 per share may sate unconvinced shareholders.

But any delay would prolong Dell's fight with activist investor Carl Icahn, who has been pushing Dell to raise his bid for months.

Plus, Icahn offered his own $14 proposal, which would also allow shareholders to keep equity in a publicly traded portion of the company. 

Share this article

More News from IBT MEDIA