Michael Dell is facing a new challenge to his bid to buyout the computer equipment maker he founded in the 1980s.
Two of Dell‘s (NASDAQ:DELL) largest stakeholders — activist investor Carl Icahn and Southeastern Asset Management — have joined forces to oppose the bid to take the computer marker private. Icahn and Southeastern are now offering $12 a share for the company, which is less than the $13.65 offered by Michael Dell, the New York Times notes.
However, part of Dell would remain publicly-traded under Icahn and Southeastern’s offer. If the board decides in favor of Michael Dell, however, Icahn and Southeastern are threatening lengthy litigation.
Writing to Dell’s board of directors, Icahn and Southeastern said that Michael Dell’s offer undervalued the company at the expense of shareholders. They upbraided the board, noting that Dell had “suffered long enough from wrongheaded decisions made by the board and its management.”
Icahn and Southeaster control about 11.47% of Dell shares.
Michael Dell announced a $24.4 billion bid to take the company private in February.
Subsequently, several other bidders, including Carl Icahn emerged. However, last month, Blackstone Group (NYSE:BX) dropped its bid for Dell citing falling personal computer sales.
Shares of Dell rose fractionally in Friday morning trading.