NEW YORK (AP) — Shares of Dell slid Friday on reports that founder Michael Dell and Silver Lake Partners don't plan on raising their $24.4 billion buyout offer for the company
Bloomberg reported that there won't be an increase in the bid, as Michael Dell and Silver Lake believe their offer from February represents fair value for the company.
Activist investor Carl Icahn, the company's second biggest shareholder, wants Dell to remain publicly traded and says the company should buy back $16 billion in stock to give shareholders a bigger return on their investment.
Dell Inc., based in Round Rock, Texas, declined comment. The company's shares lost 43 cents, or 3.3 percent, to $12.88 in afternoon trading.
Dell and other personal computer makers have seen sales crumble because of the growing popularity of smartphones and tablets. In May Dell posted a 79 percent decline in its quarterly net income. Michael Dell believes he can turn the company around by taking it private and diversifying into niches, such as business software, data storage and consulting.
The company has backed Michael Dell's proposal.
A special committee from Dell's board has said Icahn does not have adequate financing for his proposal. In a form filed with the Securities and Exchange Commission on Friday, the company said his valuation of the company is not realistic and that shares would tumble if the sale is rejected.
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