The Verge - Dell goes private: behind the struggling computer company's $25 billion buyout

Icahn and Southeastern propose counteroffer to Dell buyout

2013-05-10T04:31:55Z

Last month, Dell allowed Carl Icahn to come up with an alternative to founder Michael Dell’s proprosed $24.4 billion buyout of the company, and now he and Southeastern Asset Management are telling shareholders what they have in mind. The Wall Street Journal reports that the plan would pay $12 a share in cash or stock, and while that’s considerably lower than the $13.65 a share Michael Dell is proposing in his bid to take the company private, it would allow shareholders that don’t want to sell to hold onto their shares.

Blackstone withdraws $25 billion Dell bid

2013-04-19T01:39:11Z

Dell indicated that it would take Carl Icahn's bid for the company seriously when it struck a deal with the billionaire investor earlier this week, and it may have more reason to do so now — multiple sources are reporting that Blackstone has now abandoned its rival offer. According to the Financial Times, Blackstone's investors weren't convinced of the deal's merits, and felt that Dell's value on the stock market is already fair. Blackstone's deal would have included an option for shareholders to hold onto their stake. With the private-equity firm seemingly out of the picture, however, Dell's committee may give further thought to Icahn's bid, and founder Michael Dell's chances of taking the company private himself have also received a...

Dell avoids hostile takeover from Carl Icahn, hopes for better deal

2013-04-16T14:02:17Z

The wheeling and dealing as Dell continues its plan to go private continues. Today, the company announced that it struck a deal with investor Carl Icahn that will avoid the chance of a hostile takeover while also signaling that it will take his rival bid more seriously. Icahn and his team have agreed not to purchase more than 10 percent of Dell's shares, nor will they enter into agreements with other shareholders that would give the combined partnership more 15 percent of Dell's shares — effectively limiting his ability to gather up control of the company. Dell also granted Icahn a "limited waiver" which allows him to contact other Dell stockholders about his potential bid and potentially team up with them to strengthen his offer.

It...

Dell says PC business in danger from poor Windows 8 sales, low revenue

2013-04-01T14:52:41Z

While some Dell investors have taken issue with CEO Michael Dell's proposed plan to take his company private, an SEC filing has revealed some compelling reasons for investors to think twice about protesting the move. As noted by Forbes, a filing dated March 29th includes a lengthy section where Dell outlines the "risks and uncertainties" related to continued ownership of the company's stock — it's essentially a laundry list of how the consumer tech market has changed and how hasn't quite managed to keep up.

Difficulties that Dell notes in its filing include:

"...decreasing revenues in the market for desktop and notebook PCs and the significant uncertainties as to whether, or when, this decrease will end..."
"...the overall...

Dell details rival takeover bids from Blackstone and Carl Icahn

2013-03-25T11:31:35Z

As reported on Saturday, Michael Dell's attempt to take Dell private has been challenged by a pair of rival bids. In a press release this morning, Dell's board confirmed that it has received "two alternative acquisition proposals" from investment group Blackstone and "activist investor" Carl Icahn. The computer giant also published details of the bids, revealing that both offer a higher per-share price than Michael Dell's $13.65 proposal, which valued the company at $24.4 billion.

Icahn's offer includes purchasing $2 billion of the firm's shares at $15-per-share and offering $2 billion of cash equity financing. This would be in addition to the shares he and his firm currently own. The Blackstone group offer is to acquire Dell at...

Michael Dell's buyout plans reportedly challenged by two rival bids

2013-03-23T16:22:25Z

Bloomberg is reporting that Blackstone Group has submitted a preliminary offer to buy Dell. Citing a "person familiar with the matter," the publication says the bid commits Blackstone to hold takeover discussions with the Texas computer giant. Company founder Michael Dell is currently attempting to gain shareholder approval for a deal that would see him take Dell off the market and back into private hands. Michael Dell's $24.4 billion privatization plan involves a large personal investment, as well as cash from equity firms and a $2 billion Microsoft loan.

Since the deal was made public, detractors have said that the $24.4 billion valuation of the company is too low, and major investors have signalled their intent to vote against the...

Dell buyout challenged by another major investor and potential bids from Lenovo and HP

2013-03-07T13:44:34Z

Dell's buyout deal is reportedly facing more opposition from shareholders, and competing offers could be in the works. Sources have told Bloomberg that fellow computer makers HP and Lenovo have expressed interest in buying the company at a higher price, as has Blackstone Group. The sources say HP and Lenovo are unlikely to actually pursue a bid, but their consideration will complicate Michael Dell's plan to take the beleaguered company private for $24.4 billion provided by himself, equity firms, and a Microsoft loan.

Meanwhile, prominent investor Carl Icahn — recently known for his heavy investment in Netflix — seems to have his own plans in the works. CNBC sources reported yesterday that Icahn has collected a roughly 6 percent...

Influential Dell investors oppose buyout, insist company is worth more than $24 billion

2013-02-12T19:27:13Z

It would seem that the "immediate value" Michael Dell says stockholders are poised to receive thanks to Dell's $24 billion privatization deal isn't proving satisfactory to some. Today, investment firm T. Rowe Price, which holds a sizable chunk of Dell stock, came out in opposition of the proposed terms. "We believe the proposed buyout does not reflect the value of Dell, and we do not intend to support the offer as put forward," said Brian Rogers, T. Rowe's chief investment officer. T. Rowe Price is believed to control approximately 4.4 percent of Dell's shares, and the company isn't alone in its concerns. Just last Friday, Southeastern Asset Management, which holds an even larger 8.5 percent stake in Dell, said it too plans to vote...