Michael is no longer essential to Dell: says an expert
Michael Dell, the founder of Dell Inc, is no longer essential to the computer giant, an expert from the University of Michigan said.
Erik Gordon, a business professor at the University of Michigan, said that Michael owns a significant stake in Dell Inc. but he is not essential if it a question of taking less than total control of the company.
Speaking on the topic, "Michael is no longer essential to Dell. His attractiveness as a partner to a buyer is the size of his ownership stake. If you are willing to take less than total control, you don't need him as much."
Michael Dell owns 15.6 per cent stake in Dell Inc.
Gordon's comments surfaced as Blackstone Group LP in partnership with billionaire Carl Icahn tabled a bid to acquire Dell Inc., and the bid is reportedly better than that one tabled last month by Silver Lake Management LLC and Dell Inc founder & CEO Michael Dell.
Silver Lake Management and Michael had proposed to buy Dell Inc for $24.4 billion. The offer was severely opposed by many stakeholders, including Blackstone Group LP.
The recent offer, placed by Blackstone Group LP and Icahn, does not include Michael Dell as CEO of the company.
Stock in Dell Inc gained 2.6 per cent to close at $14.51 a share yesterday in New York - nearly 6.3 per cent more than Silver Lake and Michael Dell's $13.65-a-share offer.