The largest U.S. shareholder advisory firm has recommended on Monday that Dell stockholders vote in favour of Chief Executive Michael Dell's $24.4 billion buyout offer.
Institutional Shareholder Services is listened to by a lot of shareholders so it means the deal is more likely to defeat billionaire investor Carl Icahn's rival bid. Dell shareholders are scheduled to vote on the offer July 18. Several large investors have been pushing for improved terms. But it looks like the ISS seal of approval makes the Silver Lake/Michael Dell deal more likely to receive shareholder approval.
Institutional Shareholder Services is the biggest shareholder advisory firm, and its recommendations can sway investors looking for direction, which is most of them. ISS said Michael Dell's offer "transfers the risk of the deteriorating PC business and the company's ongoing business transformation to the buyout group."