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

May 31, 2013 at 7:21 PM
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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.

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