Shareholder Advisory firm ISS approves the deal proposed by Dell Inc., (NASDAQ:DELL) at the price upheld by Dell

Denver, CO, 07/09/2013 (Avauncer.com) – Shares of Dell Inc., (NASDAQ:DELL) rose 3.11% to close at $13.44 in the last trading session, after news came out regarding the ISS backing of the buyout break into the market, instilling confidence among shareholders of the probable price that Dell and Silver Lake purport to offer. Shares therefore stayed at the near end of their 52-week high of $8.69 to $14.64. Moreover, investor confidence was reflected in the trading volume of the stock, as approximately 50.01 million shares exchanged hands, above the 52-week average volume of 18.05 million shares.

The stock is trading safely above its low of $12.70 hit on July 5.

This activity was in the wake of a recent announcement made by Institutional Shareholder Services Inc., the firm that released its recommendation on the buyout by Dell and Silver Lake, which endorsed the deal at $13.65 per share in cash. The recommendations come from the biggest shareholder – advisory firm, at a time when shareholders had lost confidence in the offer price, considered below fair value as Mr. Icahn claimed.

ISS upheld the recommendations made by Dell earlier regarding the buyout, citing risks that would expose shareholders to the deteriorating PC business. Dell is now working to dodge the barricades raised by billionaire investor Mr. Icahn, who last week obtained $5.2 billion in debt financing in order to derail the efforts of a proposed buyout by Mr. Dell and Silver Lake Management LLC, a partner in the deal.

The deal is upheld by ISS mainly because of the premium the offer price implies, namely 25.5% over the company’s unaffected share price (before the transaction was proposed) and because of the value creation through the deal. Michael Dell holds 16% of the share capital of the company valued at $13.36 per share, and brings in another $750 million in cash.