NEW YORK (
) -- Michael Dell and Texas-based private equity firm
Silver Lake Partners
will increase their bid to acquire personal computer maker
through a pair of dividends that market watchers say will close the deal.
News of the negotiations and a raised bid came as shareholders gathered for a morning meeting on Friday to vote on the buyout offer.
Shares of the Round Rock, TX-based Dell were higher on the news, gaining 5.29% to $13.64, one cent below the original $13.65 offer price Dell and Silver Lake
Dell's special committee moved the vote to Sept. 12 on the improved bid.
Over and above this week's offer to raise the price to $13.75 per share, the buyout partners are offering a special dividend of 13 cents and another anticipated quarterly dividend of 8 cents, the PC maker's special committee said in a statement early Friday.
New terms also reduce the potential breakup fee from $450 million to $180 million, according to the committee statement.