Michael Dell wins support for takeover from investor group

DELL founder Michael Dell’s takeover pursuit got a boost yesterday after advisory firm ISS backed his $24.4bn (£16.3bn) offer to take the technology giant private.

Michael Dell has spent months fending off a rival offer led by Carl Icahn, the 77-year-old activist investor, and Southeastern Asset Management.

Shareholders in Dell are set to vote on the offer from its founder on 18 July.

Michael Dell has teamed up with Silver Lake for his takeover bid, and has won the approval of the firm’s board.

He aims to shift the firm from production to a provider of enterprise computing services.

ISS yesterday said his offer “transfers the risk of the deteriorating PC business and the company’s ongoing business transformation to the buyout group”.

Icahn has pledged to match Dell’s bid but allow investors who wish to keep shares to do so. The company’s board has rebuffed his advances.

Dell’s New York-listed shares closed up over three per cent in trading yesterday.