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Dell ‘Grossly’ Undervalued as Southeastern Asset Opposes Buyout

Michael Dell faces mounting opposition to his plan to take Dell Inc. private as the company’s largest outside shareholder vowed to block the $24 billion buyout because it “grossly undervalues” the personal computer maker.

Southeastern Asset Management, the holder of an 8.5 percent stake in Dell that it began accumulating in 2005, sent a letter to Dell’s board expressing its “extreme disappointment” with the buyout offer of $13.65 a share announced on Feb. 5. Based on an analysis included in the letter, Southeastern said Dell is worth at least $24 a share.