Michael Dell and Silver Lake Management sweetened their proposal to buy Dell Inc. this morning, increasing their offer by 10 cents per share to $13.75, according to a statement. The group also delayed a vote on the buyout to 9 a.m. Central Time on Friday, August 2.
The group's move this morning is similar to the actions it took last week, in which it punted on a decision in an effort to give Dell and Silver Lake more time to shore up shareholder support.
Leading up to that meeting, Dell's chief executive and Silver Lake had signaled that they did not want to increase their original offer of $13.65 per share, which values the company at $24.4 billion. But as the vote neared, it became clear that their proposal might fail.
This morning's activities—a higher share price, despite that initial resistance, and additional time to win support—demonstrates that there remains a significant gap between the Dell-Silver Lake proposal and shareholder expectations. The new bid may still not be sufficient.
If the buyout proposal is approved, it would end a six-month standoff between founder Dell and billionaire investor Carl Icahn, who has countered with a proposal for a 1.1 billion-share buyback priced at $14 each.
At stake: the future of the U.S. technology company that once led industry PC shipments but has since faltered, missing the sudden rise of the mobile computing market and investing in an enterprise software and services business that has yet to pay off for investors.
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