Share values of Dell Inc fell another 3% in trading last Friday. This was attributed to the increasing investor skepticism as to the ability of Dell founder Michael Dell and partner Silver Lake Partners to finance its US$24.4 billion leveraged buyout offer amidst growing opposition.
The PC market is expected to become less than rosy in the coming year and this compounds the difficulty in sealing the deal. There are also no plans to increase the current US$13.65 tabled share offer to privatize the world's third largest computer maker. This was confirmed by individuals familiar with the matter.
Bloomberg had also reported last Friday that Michael Dell and Silver Lake had ruled out to increase the value of their bid.
Several large Dell stockholders had told the board of directors that the bids need to be increased to have a chance to continue with their ownership over the company in order to approve the buyout proposal. Should there be no deal that would occur, many activist investors are seeking that an alternative measure be formulated for the company.
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