Michael Dell's plan to take his tech company private isn't going as smoothly as planned.
Shareholders are taking a stand against Dell's $24.4 billion leveraged buyout, claiming that the current offer of $13.65 per share is a steal for Dell, but a miss for shareholders.
"We believe the proposed buyout does not reflect the value of Dell, and we do not intend to support the offer as put forward," Brian Rogers, T. Rowe Price chief investment officer, said in a statement.
On Tuesday, T. Rowe Price joined the investment firm Southeastern Management in opposing the Dell takeover bid. Besides Michael Dell—who controls roughly 16 percent of the company's stock—the two firms are Dell's biggest shareholders, accounting for about 13 percent of Dell's shares.
Pzena Investment Management—another large shareholder—also plans to oppose the deal. And on Wednesday, another shareholder, Donald Yachtman of Yachtman Asset Management, told CNBC "the price is inadequate."
Dell, though, is sticking with its current offer so far.
"...The Board concluded that the proposed all-cash transaction is in the best interests of stockholders. The transaction offers an attractive and immediate premium for stockholders and shifts the risks facing the business to the buyer group. In addition, and importantly, the go-shop process provides stockholders an opportunity to determine if there are alternatives that are superior to the present offer," Dell said in a statement responding to opposition from Southeastern and T.Rowe Price.
The growing opposition from major shareholders could be a big problem for Dell because in order for the company to go private, he needs the approval of the majority of shareholders, excluding his stake in the company.
Peter Misek, an analyst at Jefferies, said in a note Tuesday that the bid could be raised to $15 per share.