Customers and investors alike are becoming worried about Dell, thanks to tensions between its Chief Executive Michael Dell as well as fireband investor Carl Icahn.
Months of conflict between the two investors as well as secretive deals are putting a slight on the company's strategy to survive amid declining PC sales and profits, if not the only strategy.
Customers are starting to wonder if Dell would still continue to exist in the near future. Vice President of Sales and Marketing for Dell Michael Gavaghen also admitted that closing deals are not as easy as it was before. Due to the cutthroat competition in the technology market, customers now take a long time before deciding on getting a Dell PC or solution.
In the August 2 offer, Michael Dell and Silver Lake Management L.L.C, increased their buyout offer to $13.75 a share. Michael Dell also offered a special dividend of 13 cents a share in addition to regular dividend of 8 cents a share. In exchange, Michael Dell hopes to receive a change in voting standards, which would make sure that abstentions would not be counted as votes opposing the buyout anymore.
Icahn, who has ownership of about 9 percent of Dell shares, argued that the buyout bid by Michael Dell will undervalue the company.
A meeting is set to be held on September, where shareholders would be voting and airing their concerns.
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