AUSTIN -- Shareholders at Dell now have until Aug. 2 to vote on a buyout deal that would turn the company private.
They were expected to meet Wednesday afternoon to vote on an offer from founder Michael Dell and an investment firm called Silver Lake. Overnight Dell upped his bid.
He initially offered shareholders $13.65 per share. That valued the company at about $24.4 billion. His new offer increases the bid by $.10 per share. The new rate values the company at approximately $24.6 billion.
The change comes amid competition from billionaire Carl Icahn. Icahn warned shareholders that Dell's initial offer undervalued the company. In a recent letter to shareholders Icahn wrote: “We have done a great deal of due diligence concerning the value of Dell, and as we have said in the past, we believe the $13.65 merger price substantially undervalues your Dell shares.”
Icahn then offered his own buyout bid. He proposed a deal in which he would buy 72 percent of the company for $14 per share. The remaining 28 percent of shares would remain open to the public.
In early trading on Wednesday Dell stock was valued at $12.80. Dell has said the new offer is his best and final bid. He says turning the company private will to boost its fortune in the long run.
Shareholders are now expected to vote on Dell’s offer on Aug. 2.