facebook
twitter
rss
account
search
search
 

Advisory firm backs Dell buyout deal

July 8, 2013 at 3:42 PM   |   Comments

ROUND ROCK, Texas, July 8 (UPI) -- An influential shareholder advisory firm Monday threw its weight behind Michael Dell's offer to take U.S. technology giant Dell Inc. private.

Michael Dell founded the company 29 years ago and helped guide it to becoming one of the largest personal computer companies in the world. But consumers have recently been focused on mobile devices, sending the personal computer business into decline.

Dell has made a $24.4 billion offer to take the company private, which he has said is necessary to turn the company around as it develops new products in order to remain profitable.

After the offer was made, the company's board considered other options before deciding to put Michael Dell's offer up to a shareholder vote.

On Monday, Institutional Shareholder Services, a proxy advisory firm, said it recommended shareholders vote for the $24.4 billion leveraged buyout.

The New York Times reported Dell's offer, which includes help from investment firm Silver Lake, amounts to $13.65 a share.

ISS put its position in a dramatic perspective. "From a public company shareholder's perspective, if your chief executive officer is willing to buy your falling knife for the privilege of catching it, there is probably a price at which you should let him."

"The risk may be less that he's taking all the upside for himself than that he is trying to catch a falling knife," ISS wrote.

Topics: Michael Dell
© 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
Earth's magnetic field may soon flip, according to new data Earth's magnetic field may soon flip, according to new data
2
Wisconsin shuts down three wolf hunting zones, two remain open Wisconsin shuts down three wolf hunting zones, two remain open
3
Deforestation in the Amazon has increased 190 percent, satellites show Deforestation in the Amazon has increased 190 percent, satellites show
4
Japanese man who 3D printed guns sentenced to two years in prison Japanese man who 3D printed guns sentenced to two years in prison
5
Soda drinkers may be slowly killing themselves Soda drinkers may be slowly killing themselves
Trending News
Around the Web
x
Feedback