Mounting odds confronted Michael Dell's takeover bid for Dell Inc. valued at US$24.4 billion. The Institutional Shareholder Services, an investor advisory firm, is leaning against the deal, said people with direct knowledge of the matter. A negative recommendation by the influential firm could increase chances that investors would oppose the proposal. Unless Michael Dell and his partners raised the bid US$13.65 per share piece added sources who asked not to be identified because the talks are held private.
Banks are now working on a contingency plan to increase Michael Dell's offer. However, it was unclear if Silver Lake Management LLC would continue backing up Dell's bid. This was because of the worsening performance of the computer manufacturer and the deterioration of debt markets. The transaction was announced on February 5 said people.
In a special committee of the board, Dell encouraged its founder and his partners to increase their offer. Michael Dell and Silver Lake have not responded yet according to sources.
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