4 Aug 2013

Offer raised for Dell by founder

7:06 am on 4 August 2013

Dell's shares have risen 5.5% after the board of the company accepted a new buyout offer from founder Michael Dell.

The BBC reports he now proposed a one-off payment of 13 cents per share to last week's offer of $13.75 per share.

Mr Dell and investment firm Silver Lake, is trying to buy back the computer giant he founded in 1984.

Shareholders had been due to vote on Friday on the offer, but the addition of the dividend means a new proposal has to be drafted and put to them.

They will now vote at a special meeting on 12 September.

The bid, excluding the one-off payment, values the company at $US24.5 billion.

The BBC reports billionaire Carl Icahn is leading the resistenace to the sale. He has argued that Mr Dell has undervalued the company.

Mr Icahn has an 8.7% stake and is trying to take control of the company along with Southeastern Asset Management.

Mr Dell, owns 16% of the company, which he founded while still at college.