Michael Dell and affiliates of Silver Lake have offered $13.65 per share in cash to shareholders.
Dell has urged its shareholders to approve a $24.4bn buyout offer by the company’s founder, chairman and CEO, Michael Dell, in partnership with private equity firm Silver Lake.
Michael Dell and affiliates of Silver Lake have offered $13.65 per share in cash to shareholders in return for taking the firm private.
The offer price represents a premium of about 37% over the average closing share price during the January 2013.
Dell said the offer is the best alternative available in a challenging business environment and offers certainty and a very material premium over pre-announcement trading prices.
"Having conducted a thorough and probing review of Dell’s challenges and opportunities, we believe that the risks and uncertainty of a standalone public company are high and that the transaction we have negotiated offers superior value for Dell stockholders," the company said.
Dell investor Carl Icahn and Southeastern Asset Management, who own a combined 12% share in the company, are opposing the buyout and have made an alternative offer.
Earlier in 2013, another investor, Catherine Christner, had also sued the company’s CEO, Michael Dell and other company directors alleging that Dell’s board is shortchanging shareholders in the takeover.