ISS endorses Michael Dell's offer

  • Shareholder advisory firm Institutional Shareholder Services (ISS) has announced its support for Michael Dell's plan to buy out the computer company he founded.

    It was earlier reported that ISS would issue a negative guidance against Dell and his backer, Silver Lake Partners, and their $13.65 offer.

    The offer is less than the $14 price that rival Carl Icahn and Southeast Asset Management placed to buy back the majority of shares.

    Icahn's deal would also leave part of the company public but Dell's offer is in cash.

    ISS wrote that the transaction "offers a 25.5% premium to the unaffected share price, provides certainty of value, and transfers the risk of the deteriorating PC business and the company's on-going business transformation to the buyout group."

    The vote of confidence saw Dell stock rise in trade on Monday.

    Shareholders cast their vote on July 18 on the rival plans over Dell's future.

    Tagged as: ISS, Institutional Shareholder Services, Michael Dell, buy out company