It wasn't that long ago when it seemed like Michael Dell
was well on his way to acquiring the company he founded
. Michael, along with Silver Lake Partners and an investment from Microsoft, put together a $24.4 billion buyout bid that was unanimously approved by Dell's board of directors. The deal would pay shareholders $13.65 per share, and then Michael and his company would ride off into the sunset, going private along the way.
Billionaire businessman and Dell shareholder Carl Icahn has been one of the most outspoken opponents of the deal, claiming that Michael's offer severely undervalues the world's third largest PC maker. Icahn offered an alternative deal that was initially shrugged off by the board due to concerns about him being able to secure the necessary funding, but earlier this week, he announced he was able to line up a $5.2 billion loan
. That's a potential game changer.
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Icahn's offer, which involves Southeastern Asset Management, is to pay Dell shareholders $14 per share while letting them keep their stock. Dell would also remain a publicly traded company under Icahn's proposal. It doesn't take a math major to figure out which deal is more desirable to shareholders, unless Michael and Silver Lake Partners were to raise their bid.
Some outlets have reported that they have no desire to go that route, and in the wake of that reported decision, shares of Dell fell 3.1 percent to $12.89. It recovered a bit throughout the day on Friday and closed at $13.03, down 2.3 percent, Dell's lowest closing price since before Micheal's offer was announced.