Boston, MA 02/12/2013 (wallstreetpr) – Dell Inc. (NASDAQ:DELL)’s external shareholders have expressed that the deal to go private undervalues the company. However, the stocks closed higher than the initial offer price yesterday.
The company’s largest outside shareholder; Southeastern Asset Management had said Dell Inc. (NASDAQ:DELL) is worth $24 per share. However, the offer price of $13.65 per share has disappointed the investor.
The offer price for the buyout is as much as 25% more than the price at which Dell Inc. (NASDAQ:DELL) had last closed in the market, before its decision to go private.
Southeastern Asset management has said that Dell Inc. (NASDAQ:DELL)’s technologies and business-oriented services are worth much more than that being offered. Chairman and Chief Executive Officer Michael Dell is aiming to control over the majority of the company. He is being assisted by Silver Lake Management LLC.
Brian Marshall, an analyst said, “They’re probably going to sweeten it a little bit. These deals aren’t usually inked on the first offer.”
Oppositions have also come from other shareholders. Pzena Investment Management firm’s Richard Pzena has announced that he would submit a vote against the deal. His firm has held 12.7 million shares. Yacktman Asset Management has said that it would also oppose the deal at the current price. William C. Nygren of yet another investment firm has said that he would not sit quite if later it were to be found out that there could have been better deals on offer.
“This deal offers an attractive and immediate premium for stockholders and shifts the risks facing the business to the buyer group, “said a spokesperson for Dell Inc. (NASDAQ:DELL).
The shares of Dell Inc (NASDAQ:DELL) were up by 0.44% and currently trading at $13.76.
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