Southeastern Asset Management Inc is the latest shareholder who has voiced the opinion that the management takeover, worth $24.4 billion, is undervalued.
Reuters reports that the landmark deal to take Dell private has "disturbed" Southeastern Asset Management, according to sources close to the matter.
Led by CEO Michael Dell, the deal secured between the founder and equity firm Silver Lake Management was finalized at $13.65 per share. However, some believe that $20 per share would have been more appropriate for the third-largest PC maker.
Due to be complete by November, going private will save Dell the critical eyes of Wall Street, and remove the necessity of filing both quarterly and annual financial statements publicly. In addition, the management buyout will mean the founder is given the power to change business strategy and streamline operations without answering to shareholders.
In the past few days, other investors have also voiced their displeasure. Dell investor Catherine Christner has filed a suit with Delaware Chancery Court against the computing firm, claiming that that the deal has shortchanged investing parties, and accusing Dell's executives of allowing the PC maker to be sold "on the cheap."
In addition, the publication says that investing parties Alpine Capital Research and Schneider Capital Management -- which own roughly 2,350,000 shares collectively -- plan to vote against the deal. Nick Tompras, president of St Louis. Tompras-based Alpine Capital Research, commented "Let the fools sell low -- don't make us all fools."
If the buyout goes ahead, Southeastern may lose out the most. Having purchased its stake for over $20 a share, the firm may lose close to $825 million based on the $13.65 offer price.
Dell is currently within its 45-day "shop" period, which will allow other bidders to come forward -- but alternative buyers are not expected to appear.