Dell Board Recommends Michael Dell Buyout Offer
The board at Dell said that a takeover bid led the company's founder and CEO is in the best interest of shareholders at the slumping PC maker, and asked them to approve the deal when it's put to a vote in July.
The board unanimously recommended the offer from Michael Dell to take the company private for $24.4 billion, or $13.65 per share, according to filings with the Securities and Exchange Commission on Friday.
The offer has been criticized by some prominent shareholders.
Billionaire investor Carl Icahn and Southeastern Asset Management, Dell's largest independent shareholder, pitched an alternative this month that would let Dell shareholders keep their stake in the company and give them either $12 per share in cash or additional shares.
A committee of Dell board members evaluating that offer has said that it needs more information.
Icahn and Southeastern own more than 12 percent of Dell shares combined, a total that trails only Michael Dell. They have said they will work to convince other Dell shareholders to reject the Michael Dell buyout.
Neither Icahn nor Southeastern immediately returned calls from The Associated Press early Friday.
Dell Inc. and other personal computer makers have seen sales crumble because of the growing popularity of smartphones and tablets. Michael Dell believes he can turn the company around by taking it private and diversifying into niches, such as business software, data storage and consulting.
The shareholder meeting will take place July 18 at the company's Round Rock, Texas, headquarters.
Shares of Dell slipped 2 cents to $13.25 Friday before markets opened.