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Dell shares jump 5.5% as board agrees to new buyout offer | |
(about 5 hours later) | |
Dell's shares have risen 5.5% after the firm's board accepted a new buyout offer from founder Michael Dell. | |
The latest proposal add a one-off payment of 13 cents a share to last week's $13.75 a share offer. | The latest proposal add a one-off payment of 13 cents a share to last week's $13.75 a share offer. |
Mr Dell, together with investment firm Silver Lake, is trying to buy back the computer giant he founded in 1984. | Mr Dell, together with investment firm Silver Lake, is trying to buy back the computer giant he founded in 1984. |
Shareholders had been due to vote on Friday on the offer, but the addition of the dividend means a new proposal has to be drafted and put to them. | Shareholders had been due to vote on Friday on the offer, but the addition of the dividend means a new proposal has to be drafted and put to them. |
They will now vote at a special meeting on 12 September. | They will now vote at a special meeting on 12 September. |
Resistance | Resistance |
Mr Dell, who owns 16% of the company he founded while still at college, wants to reorganise the business which has been moving away from making computers and into providing technology services. | Mr Dell, who owns 16% of the company he founded while still at college, wants to reorganise the business which has been moving away from making computers and into providing technology services. |
But shareholders have been resisting, led by billionaire Carl Icahn, who has argued that Mr Dell has undervalued the company. | But shareholders have been resisting, led by billionaire Carl Icahn, who has argued that Mr Dell has undervalued the company. |
Mr Icahn has an 8.7% stake in the company and is trying to take control of the company along with Southeastern Asset Management. | Mr Icahn has an 8.7% stake in the company and is trying to take control of the company along with Southeastern Asset Management. |
On Thursday, he began a legal challenge to Mr Dell's plans. | On Thursday, he began a legal challenge to Mr Dell's plans. |
The bid, excluding the one-off payment, values the company at $24.5bn (£16bn). | The bid, excluding the one-off payment, values the company at $24.5bn (£16bn). |