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Dell directors demand Silver Lake, Michael Dell up $24.4bn offer

4 Jul 2013

Dell laptopThe $24.4bn offer for Dell from founder Michael Dell and Silver Lake Capital has hit further trouble after the company’s directors overseeing the deal called for the duo to hand over more money.

Dell’s move comes amid strong shareholder concern that the buyout offer is too low, with activist shareholder Carl Icahn leading a revolt against the deal to drive up the price.

Last month Icahn and buyout firm Southeastern asked fellow Dell shareholders to vote against the $24.4bn take-private offer, a regulatory filing showed.

The FT reported that subsequent meetings with investors had revealed enough are unsettled that no more than half are currently considering backing the buyout, giving Icahn a stronger hand in driving up the price.

Dell and Southeastern were previously in talks with banks and asset managers to secure up to $7bn for their counter-bid for Dell.

Icahn and Southeastern, which collectively hold a 13 per cent stake in the company, offered $12 per share in cash or newly issued stock, compared with the $13.65 per share offer from Dell and Silver Lake.

Back in March Icahn offered $15 per share for 58 per cent of the company.

Private equity major Blackstone also strongly considered making an offer from Dell, but pulled out of the race in April.

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