ISS recommends vote for Dell founder's offer
A top proxy firm is recommending that Dell shareholders vote in favor of a deal that would allow the company's founder and an investment firm to buy it and take it private.
Michael Dell and Silver Lake Partners have offered to buy the Round Rock, Texas-based PC maker for $13.65 per share, or a total of $24.4 billion. But Carl Icahn, Dell's second-largest shareholder, says he wants Dell to remain publicly traded and boost value by buying back its stock.
Institutional Shareholder Services pointed to the offer's hefty premium and the certainty of the all-cash bid.
ISS says that if shareholders don't take the offer, they have to be willing to continue to hold shares Dell as it continues to transform its business amid a deteriorating personal computer industry.
Dell shares rose 3 percent to $13.41 in premarket trading.