Michael Dell and Silver Lake Management LLC sweetened their proposal to buy Dell Inc., boosting their offer to $13.75 a share in an effort to clinch shareholder support.
The group delayed a vote on the leveraged buyout to Aug. 2 at 9 a.m. local time at the personal-computer maker’s headquarters in Round Rock, Texas, according to a statement today. The parties called the offer, an increase from their previous $13.65-a-share bid, their “best and final proposal.”
If approved by shareholders, the new bid would end a six-month fight between Chief Executive Officer Dell and billionaire Carl Icahn, who has tried to derail the deal by proposing the company repurchase most of the outstanding shares at $14 apiece and offer some warrants. By taking the company he founded in 1984 private, Dell is seeking to transform it into a bigger provider of hardware, software and services for corporate-data centers, after years of ebbing sales and profit.
Dell’s initial offer, which had the support of the company’s board, won backing from Institutional Shareholder Services Inc. earlier this month. A majority of investors, excluding Dell’s 15.6 percent stake in the computer maker, will have to approve for the deal to pass.
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