Regions

Dell Founder to Face Mounting Odds Against Buyout Offer

July 3
11:09 PM 2013

Mounting odds confronted Michael Dell's takeover bid for Dell Inc. valued at US$24.4 billion. The Institutional Shareholder Services, an investor advisory firm, is leaning against the deal, said people with direct knowledge of the matter. A negative recommendation by the influential firm could increase chances that investors would oppose the proposal. Unless Michael Dell and his partners raised the bid US$13.65 per share piece added sources who asked not to be identified because the talks are held private.

Banks are now working on a contingency plan to increase Michael Dell's offer. However, it was unclear if Silver Lake Management LLC would continue backing up Dell's bid. This was because of the worsening performance of the computer manufacturer and the deterioration of debt markets. The transaction was announced on February 5 said people.

In a special committee of the board, Dell encouraged its founder and his partners to increase their offer. Michael Dell and Silver Lake have not responded yet according to sources.

© 2022 VCPOST, All rights reserved. Do not reproduce without permission.
Tags
Share

Comments

Join the Conversation

Subscribe to VCpost newsletter

Sign up for our Deals of the Day newsletter.
We will not spam you!

Real Time Analytics