MICHAEL DELL may be forced into an improved buyout bid for his PC company after several investors welcomed a rival proposal from activist investor Carl Icahn.
On Friday, Icahn and Southeastern Asset Management, both big Dell shareholders, proposed a different path to Michael Dell’s $24.4bn (£15.9bn) buyout offer, calling it an insult to shareholders. Instead, Icahn plans to offer investors a $21bn payout, which would vastly dilute their shareholding while giving those who do not want a dividend a greater share of the company.
The proposal has been received favourably amongst shareholders such as US firms Gamco Investors and Alpine Capital Research, who said it would allow those who wanted to retain a stake in the ailing PC manufacturer keep their investment.
Others said that the move will force Michael Dell, the billionaire founder and chief executive of Dell, to up his offer in order to win over shareholders.