Dell Deal Runs into Resistance from Investors
It is already known that Michael Dell, with the help of Silver Lake Equity and Microsoft, wants to take his namesake company private. The buyout he has proposed is valued at around US$24.4 million. The deal however has run into resistance from investors.
According to Reuters T. Rowe Price group, which is the third larget shareholder for Dell Inc. with a 4.4 percent stake, has said that the proposed deal does not accurately reflect the value of the tech company. T. Rowe Price has thrown its voice in with previous objections voiced Dell Inc's second largest shareholder Southeastern Asset Management.
From the looks of it, the stakeholders expect the buyout to be sweetened even further. According to the terms of the deal offered by Michael Dell, Dell Inc has 45 days to shop around for other offers. But at the same time, the deal states that Michael Dell and Silver Lake have the right to match or better any other deal offered before it can be accepted.