Dell Buyout Deal Inches Closer to Fruition
January 16, 2013 9:12 AM
comment(s) - last by
Four major banks are lined up to finance the deal according to rumors
It was reported earlier this week that computer maker Dell
was in talks with private equity firms to go private
. Reports have surfaced today that those talks are now at an advanced stage with at least four major banks ready to provide financing. Rumors claim that Silver Lake Partners has lined up Credit Suisse, Bank of America Merrill Lynch, Barclays, and RBC to finance the deal.
Dell is currently worth approximately $19 billion and if this deal goes through it will reportedly be one of the largest since the global recession hit. Buyout discussions are floating a price of $13.50 to $14 per share. The equity investment from Silver Lake and other potential investors would be approximately $2 billion.
Michael Dell reportedly personally owns 244 million shares of his company.
Sanford Bernstein analyst Toni Sacconaghi said, "[The odds of a deal] are probably low, given its size and our expectation that it may require about $4 billion in equity."
"We see the rationale for a Dell (leveraged buyout) as being largely opportunistic given low valuation and interest rates, as we don't see any obvious restructuring opportunities or unique exit strategy."
Barclays analyst Ben Reitzes added, "Obviously, with Michael Dell's ownership of $3 billion and net worth of about $14.6 billion the possibility of a go-private transaction cannot be ruled out."
Dell is reportedly being advised on the possible buyout by JPMorgan.
This article is over a month old, voting and posting comments is disabled
RE: No comments?
1/16/2013 9:48:52 PM
I think Dell screwed up in the same space HP did: smartphones.
HP had a solid product (Veer/Pre3/Touchpad) and canned it.
Dell had a solid product (Venue\Venue Pro) and canned it.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
Report: Dell May be Going Private
January 14, 2013, 8:34 PM
AT&T CEO Says Carriers Can No Longer Foot the Bill for High-End, Subsidized Smartphones
December 11, 2013, 10:55 AM
IPotty and iPad Tot Seat Ignite Controversy: Brilliant or "Destructive"?
December 10, 2013, 6:22 PM
Quick Note: Sleek White Second-Gen Nexus 7 Goes on Sale for $269
December 10, 2013, 4:55 PM
Illinois Considers Ban on Google Glass While Driving
December 10, 2013, 10:21 AM
EU to Nokia: Don't Even Think About Becoming a Patent Troll
December 9, 2013, 10:29 AM
Apple's "iBeacon" Tracks Customers Inside Apple Stores for Enhanced Shopping Experience
December 6, 2013, 11:26 AM
Most Popular Articles
Experts: Masturbation Prevents Cancer, Diabetes, Insomnia, and Depression
December 6, 2013, 2:01 PM
Hackers Nab 2 Million Login Credentials from Facebook, Gmail, Twitter
December 5, 2013, 1:00 PM
Thieves Steal Truck with Cobalt-60 Onboard in Mexico, Will Die "Without a Doubt" from Exposure
December 5, 2013, 12:04 PM
Man Arrested for Using 5 Cents Worth of Electricity to Charge Nissan Leaf at Middle School
December 4, 2013, 8:00 PM
U.S. Navy Fires "XFC" Drone from Underwater Submarine
December 6, 2013, 2:35 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information