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Dell Heads Into Bidding War

Two rival bids have priced Dell shares above its founder's offer


dell computer logoThe battle for struggling computer-maker Dell (NASDAQ:DELL) is heating up.

After reviewing two last minute counter bids from billionaire investor Carl Icahn and Blackstone Group (NYSE:BX), a special committee of the company’s board said that both could result in “superior proposals,” beating company founder Michael Dell’s $24 billion bid. The board said it will work with all three interested parties to obtain the highest value for the company, USA TODAY noted.

Icahn Signs Confidentiality Pact With Dell
Icahn Signs Confidentiality Pact With Dell

Investors liked the news, sending Dell shares up about 3% in Monday morning trading.

According to a company spokesman, Michael Dell had agreed to explore “alternative acquisition proposals” with the other bidders.

The new bids were received late Friday, the final day that the board was prepared to consider competing proposals for the company. Carl Icahn is looking to purchase 58% of the company’s shares, gaining a controlling interest for $15 a share. Blackstone wants to buy the whole company for $14.25 a share.

In February, a consortium of investors including Michael Dell, Silver Lake Partners and Microsoft (NASDAQ:MSFT) offered $13.65 a share for the company.

Article printed from InvestorPlace Media,

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