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The Journal Gazette

Friday, July 05, 2013 3:47 pm

Dell slips on report buyout offer won't be raised

The Associated Press

Shares of Dell are falling on reports that founder Michael Dell and Silver Lake Partners don't plan on raising their $24.4 billion buyout offer for the company.

Bloomberg, citing unnamed sources, reports that there won't be an increase in the bid because Dell and Silver Lake see their offer as fair value. Activist investor Carl Icahn has told shareholders that Dell should buy back $16 billion in stock to give investors a bigger return on their investment.

Dell Inc., based in Round Rock, Texas, declined comment Friday. Its shares lost 43 cents, or 3.3 percent, to $12.88 in afternoon trading.

Icahn is the company's biggest independent shareholder with about 152.5 million shares or an 8.7 percent stake, second only to Michael Dell.