Dell shares rally as Michael Dell prepares to buy back company
Shares in Dell have rallied as the company’s founder plans to buy his business back.
Shares in Dell rallied on the technology-heavy Nasdaq index in New York yesterday (February 5th), after Michael Dell said he will buy back the company that he founded and bears his name.
Along with investor Silver Lake and financial backing from Microsoft, Mr Dell will offer to buy the world's third-largest PC maker for $24.4 billion (£15.5 billion) and aims to turn the state of the business around as it has been struggling in recent years as cheaper Asian rivals permeate the market.
This move will take Dell off the Nasdaq after 25 years.
Mr Dell already owns some 14 per cent of the firm and he and fellow senior executives will retain their existing stakes, with the buyout of remaining shares to be carried out by a consortium made up of Mr Dell, his investment fund and Silver Lake.
Dell's success over the past three decades has made its founder one of the wealthiest people in the US.
At market close yesterday, Dell shares rose by one per cent to $13.41 per unit.
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