Shares of Dell Inc., which last week agreed to be taken private, closed above the offer price Monday for the first time since the announcement after the computer maker’s largest outside shareholder said the proposed deal undervalues it.
Southeastern Asset Management, which holds an 8.5 percent stake in Dell, said on Feb. 8 that it sent a letter to Dell’s board expressing its “extreme disappointment” with the buyout offer of $13.65 a share announced on Feb. 5. Based on an analysis included in the letter, Southeastern said Dell is worth about $24 a share.
Dell rose less than 1 percent to $13.70 at Monday’s close in New York, the highest price since May 2012. The buyout offer is 25 percent more than the closing price of $10.88 on Jan. 11, the last trading day before Bloomberg News reported the discussions to take the Round Rock, Texas-based company private.
Chief Executive Officer Michael Dell is seeking to take back majority control of the company he founded in 1984 with a $24.4 billion offer in conjunction with Silver Lake Management LLC. In the letter, Southeastern said Dell’s business-computing acquisitions, along with its server and technology-services operations, are worth more than the offer.
© Copyright 2013 Bloomberg News. All rights reserved.