Dell shares plunge 3pc on takeover concerns
Shares of Dell Inc fell more than 3pc yesterday, as investors grew skeptical that company founder Michael Dell and Silver Lake Partners will raise their $24.4 (€19bn) buyout bid in order to overcome growing opposition.
Dell employs 2,000 staff in Ireland at sites in Dublin and Limerick and has been the centre of a takeover battle for most of this year.
A deteriorating outlook for the PC industry has made a deal more challenging, and the buyout group is currently not planning to increase its $13.65 per share offer to take Dell private, people familiar with the matter said on Wednesday.
Bloomberg separately reported yesterday morning that Michael Dell and Silver Lake ruled out raising their bid, citing people with direct knowledge of the matter.
Shares of Dell were trading 3.1pc lower at $12.89 on the Nasdaq.
The shareholder pressure on Dell comes ahead of a key report expected next week by investment advisory firm Institutional Shareholder Services, and a July 18 shareholder meeting, when investors will vote on the Michael Dell-Silver Lake deal.