Dell ups the ante in Dell takeover

Michael Dell and Silver Lake increase offer for shares, vote postponed until August

Tags: Dell Corporation
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Dell ups the ante in Dell takeover Michael Dell has increased his bid by 10c per share. (Getty Images)
By  Mark Sutton Published  July 25, 2013

Michael Dell and investment firm Silver Lake have increased the value of their offer in their takeover bid for the computing firm Dell founded.

The conditional offer increases the value per-share by 10 cents, for an overall value of $24.6bn, but the Dell board must drop a rule that shares not cast either for or against the deal be counted as ‘no' votes.

The condition is significant because a recent preliminary tally of votes in the takeover battle predicted 27% abstentions. Dell's own 16% stake cannot count in the vote, so he and Silver Lake must win over more than 42% of Dell's shares. The opposing bloc of Carl Icahn and his main partner, Southeastern Asset Management, together own more than 12.5% of the company's shares so the abstention votes could be critical to the decision.

The special committee of Dell's board has now postponed the vote on the takeover offer until 2nd August.

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