ISS backs Dell over Icahn in fight for company

Michael Dell

ISS Proxy Advisory Services is recommending that Dell shareholders approve the offer by CEO Michael Dell and private-equity firm Silver Lake Partners to take the company private, days after the two ruled out sweetening their buyout offer.

In a report obtained by CNBC, ISS weighed in on the Dell and Silver Lake offer of $13.65 per share in cash.

"ISS recommends clients vote FOR this transaction, which offers a 25.5 percent premium to the unaffected share price, provides certainty of value, and transfers the risk of the deteriorating PC business and the company's on-going business transformation to the buyout group," the company wrote.

(Read More: Michael Dell, Silver Lake Not Raising Buyout Offer )

On Friday, Dell's share price stumbled on a report that Michael Dell and Silver Lake had ruled out the option of increasing their buyout offer.

Carl Icahn's Icahn Enterprises and Southeastern Asset Management have been lobbying against the transaction, and have proposed an alternative leveraged recapitalization plan in which the company would repurchase up to 72 percent of shares at $14 per share, yet also allow shareholders to continue holding equity in the company.

-By CNBC.com.

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