Dell shares jump 5.5% as board agrees to new buyout offer

 

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Dell's shares have risen 5.5% after the firm's board accepted a new buyout offer from founder Michael Dell.

The latest proposal add a one-off payment of 13 cents a share to last week's $13.75 a share offer.

Mr Dell, together with investment firm Silver Lake, is trying to buy back the computer giant he founded in 1984.

Shareholders had been due to vote on Friday on the offer, but the addition of the dividend means a new proposal has to be drafted and put to them.

They will now vote at a special meeting on 12 September.

Resistance

Mr Dell, who owns 16% of the company he founded while still at college, wants to reorganise the business, which has been moving away from making computers and into providing technology services.

But shareholders have been resisting, led by billionaire Carl Icahn, who has argued that Mr Dell has undervalued the company.

Mr Icahn has an 8.7% stake in the company and is trying to take control of the company along with Southeastern Asset Management.

On Thursday, he began a legal challenge to Mr Dell's plans.

The bid, excluding the one-off payment, values the company at $24.5bn (£16bn).

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