Michael Dell may be facing a stockholders’ revolt.
T. Rowe Price, the mutual fund biggie that held 4.4% of Dell at the end of the third quarter, isn’t prepared to support the company’s leveraged buy-out at the price the Dell board agreed to last week.
T. Rowe Price chairman and chief investment officer Brian Rogers released a statement saying, “We believe the proposed buyout does not reflect the value of Dell and we do not intend to support the offer as put forward.”
His position mirrors that of Southeastern Asset Management, which is understood to hold 8.4% of Dell and faces a loss of nearly $400 million if the deal goes down at the $13.65 or $24.4 billion agreed to. It claims Dell is worth $24 a share, a price it hasn’t fetched in a long time.