The board of Dell has recommended that shareholders should accept an offer led by company founder Michael Dell to take the company private.
It recommended that shareholders approve his $US24.4 billion buyout offer at a vote on 18 July.
Investor Carl Icahn and Southeastern Asset Management - who own a combined 12% of Dell - oppose the buyout and have made an alternative offer.
Mr Dell and the Silver Lake private equity group have offered $13.65 per share in cash to shareholders in return for taking the company private, which would see the company delisted from the stock exchange.
The BBC reports the offer values Dell 37% higher in terms of market capitalisation than in January, before Mr Dell's buyout plan emerged.
Mr Dell has pledged to shift the business away from PCs into mobile devices and business software.
Mr Icahn and Southeastern Asset Management have offered an alternative that would give Dell shareholders $12 per share in cash or additional shares.
While this is a lower figure than Mr Dell's offer, the BBC reports it would allow investors to retain their stake in the company.
