Published July 08, 2013
Investment advisory firm ISS has recommended Dell Inc shareholders vote in favor a $24.4 billion offer for the PC maker from founder and Chief Executive Michael Dell, the company's special committee said on Monday.
Michael Dell, whose offer is backed by equity financing from buyout firm Silver Lake, does not plan to raise the $13.65 per share bid, people familiar with the matter said last week.
Billionaire Carl Icahn and Southeastern Asset Management have made a rival bid that would see shareholders tender 1.1 billion shares at $14 each.
ISS said Michael Dell's offer "transfers the risk of the deteriorating PC business and the company's ongoing business transformation to the buyout group."
Michael Dell has said the company's shift from a computer maker to a provider of enterprise computing services is best done away from public scrutiny.
Dell is investing aggressively in research and sales to retain customers as it looks to grab market share from established players such as International Business Machines Corp and Hewlett-Packard Co.
Dell's profit shrank 79 percent for the first fiscal quarter ended April, and revenue fell 2 percent.
Dell shares were up 2.3 percent in premarket trading on Monday. They closed at $13.30 on Friday on the Nasdaq.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Saumyadeb Chakrabarty and John Wallace)