Michael Dell deal faces further obstacles

Posted by Andrea Petrou

Michael Dell and his Silver Lake cash cow pal have been dealt a potential blow in their bid to buyout Dell.

The pair, which looked like they had a clear run after rival investor Blackstone gave up on its
challenge to purchase the company, now face competition from Carl Icahn and Southeastern Asset Management.

The pair,  two of Dell s largest shareholders, have proposed an alternative to the $24.4 billion plan laid out by Michael Dell and now want to take an additional $12 a share in cash or stock, claiming the Silver Lake/Michael Dell buyout significantly undervalued the company.

Dell hasn't had a good run of things of late, which was one of the reasons Blackstone could have pulled out of the bidding war.

The company saw a 14 percent drop in industry PC sales in the first quarter of 2013 and a forecasted operating income drop from $3.7 billion to $3 billion in the current fiscal year.