Dell Share Price Gains on ISS Backing for Founder’s Buyout Offer

iNVEZZ.com Tuesday, July 9th: The largest U.S. shareholder advisory firm, Institutional Shareholder Services (ISS), recommended yesterday that Dell (NASDAQ:DELL) investors vote in favour of founder and chief executive Michael Dell’s $24.4 billion buyout offer. (Dell Share Price: ISS Backs Founder Michael Dell’s Buyout Offer). Two other shareholder-advisory firms followed suit.

Following the surprise endorsement of Michael Dell’s offer, shares in the U.S. computer maker jumped significantly. After declining by more than three percent in the preceding session, the Dell share price closed Monday’s trading 3.1 percent up at $13.44.
**Still Under Pressure to Secure Investors’ Vote of Support**
Even after the buyout proposal from Michael Dell and partner Silver Lake Management received support from shareholder-advisory firms, the planned buyout of the personal computer maker he founded is not secure yet.

!m[Michael Dell Has Until July 18 to Win over Undecided Investors](/uploads/story/3807/thumbs/pic1_inline.jpg)
A fifth of Dell’s shares is held by investors including rival bidder Carl Icahn and Southeastern Asset Management, who oppose the founder’s attempt to take control of Dell. That leaves the CEO just nine days until the July 18 final vote to win over undecided shareholders whose support could tip the deal in his favour.

An unnamed source has told *Bloomberg* that a special committee of Dell’s board overseeing the transaction is meeting with major shareholders to seek backing for the buyout, and encouraging the CEO to do the same. A failure to clinch a vote for the offer could send the Dell share price sinking and cloud the company’s future, analysts have warned.