Michael Dell’s $24.4 billion bid to take control of the computer firm he founded isn’t enough according the Dell executives.
A committee assessing the deal on behalf of Dell’s shareholders advised the PC maker’s founder and chief executive to up his bid ahead of a key verdict on the deal from investment advisory firm ISS due next week.
The recommendation came as it emerged billionaire activist investor Carl Icahn has secured over $3 billion in financing for his rival proposal.
Michael Dell has been battling for months to buy back the firm and take it private in a bid to turnaround the struggling PC maker. Icahn has consistently opposed the bid, saying Dell’s offer undervalues the company.
Icahn and Southeastern Asset Management, two of Dell’s largest shareholders, have tabled a rival bid, offering shareholders $14-a-share in cash or stock while keeping the company public. Dell, backed by buyout specialists Silver Lake, is offering $13.65 a share.
In may Dell revealed its first-quarter profits fell 79%.
