Michael Dell has received the go signal from Institutional Shareholder Services Inc. for the $24.4 billion acquisition of his company. Dell and Silver Lake Management LLC's acquisition plan would save shareholders from risks tied to the deteriorating personal-computer business. Institutional Shareholder Services was, as recently as last week, actually leaning against endorsing Dell's offer while a few shareholder advisors, such as Glass, Lewis & Co., backed the buyout proposal.
Michael Dell will now be more confident with the backing from ISS as he seeks support ahead of a shareholder vote this July 18. Dell is challenging billionaire investor Carl Icahn, who said that he acquired around $5 billion in debt financing to support his latest effort to stop the CEO's proposed buyout last week.
"The ISS vote is a positive for Dell and Silver Lake," analysts have said, noting Dell wouldn't have to sweeten the deal to get his plans approved among board members.
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