facebook
twitter
rss
account
search
search
 

Dell board goes with Michael Dell's $24.4 billion deal

May 31, 2013 at 7:21 PM   |   Comments

ROUND ROCK, Texas, May 31 (UPI) -- The board at U.S. computer giant Dell said the best offer on the table was a bid by founder Michael Dell to take the company private.

Shareholders will vote on the proposal in July, CBS reported Friday.

Michael Dell, along with equity firm Silver Lake Partners, offered $24.4 billion for the company, saying it would be easier to orchestrate a turnaround if it were taken private.

The computer company has been a major success story, but has had trouble keeping up with technology advances, which now favor mobile devices.

After Dell submitted his proposal, billionaire investor Carl Icahn submitted a counteroffer, complaining that Dell had undervalued the company.

Icahn, along with Southeastern Asset Management, proposed an offer that would keep the company public and pay out $12 per share to shareholders.

The board, however, said that proposal, known as a leveraged recapitalization, would shift risks back to shareholders.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Full steam ahead: Starbucks poised for deliveries Full steam ahead: Starbucks poised for deliveries
2
U.S. Navy authorizes building of Common Missile Compartment tubes U.S. Navy authorizes building of Common Missile Compartment tubes
3
Pakistan seeks coastal patrol cutters from U.S. Pakistan seeks coastal patrol cutters from U.S.
4
Work moves ahead on two new guided missile destroyers Work moves ahead on two new guided missile destroyers
5
Elon Musk: We are 'summoning a demon' with artificial intelligence Elon Musk: We are 'summoning a demon' with artificial intelligence
Trending News
Around the Web
x
Feedback