Dell gets two preliminary and competing buyout offers

Several weeks ago, Dell announced plans to turn itself back into a privately run company via a $24 billion leveraged buyout, financed in part by a $2 billion cash investment from Microsoft. Now it looks like the major PC maker could receive two competing buyout offers.

The Wall Street Journal reports that the Blackstone Group has given a preliminary offer to Dell's special committee that, in theory, could be worth more than the $13.65 a share price that company founder Michael Dell is offering shareholders. At the same time, well-known activist investor and billionair Carl Icahn, who has already purchased a number of Dell shares, also told the Dell committee that he is working on a firm bid for the company.

Neither Blackstone nor Icahn have yet to reveal exactly how they plan to finance any kind of competing offer. Their preliminary announcements to the committee give them four more days to secure their funding. Besides the Microsoft investment, Michael Dell plans to raise the rest of the money from Wall Street banks and Silver Creek Partners.

Add it all up and it looks like Dell shareholders might be the big winner with as many as three competing bids for the company, which is sure to raise the price of any stock purchase offer beyond the current $13.65 a share price.

Source: Wall Street Journal | Image via Dell

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14 Comments

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I have a Dell from 2008 that has been and is excellent. Their modern laptops feel cheap and plasticky by comparison - at least the consumer ones they sell in stores.

One major problem but also a good bit of customer service, my GPU failed after nearly 5 years and they replaced the motherboard and GPU free of charge (even though I had made after-market upgrades they didn't hide behind that). The failure was due to a common manufacturing fault that nearly all this model (and other laptops from various manufacturers with this GPU) eventually come down with though.

What ever helps them to actually beef up Alienware and other PC Gaming oriented PC's they offer. Their current line is a joke, including Alienware for the money they ask for it.

The Blackstone group belongs to the Rothschilds. They already own a half of the world and a significant chunk of Dell. So I think I prefer Carl Icahn.

Whatever happens I hope that Michael Dell gets the company back to being private. It would be great for consumers if Dell goes back to its former glory. It used to produce really good quality computers at good prices (maybe slightly high to some). The idea of going back to private is to take the company in the direction Michael Dell wants. With a publicly traded company any decisions need to go through the major shareholders. If Michael Dell takes the company private, he can make decisions much easier and take it in any direction he wants.

mnl1121 said,
Whatever happens I hope that Michael Dell gets the company back to being private. It would be great for consumers if Dell goes back to its former glory. It used to produce really good quality computers at good prices (maybe slightly high to some). The idea of going back to private is to take the company in the direction Michael Dell wants. With a publicly traded company any decisions need to go through the major shareholders. If Michael Dell takes the company private, he can make decisions much easier and take it in any direction he wants.

With any luck, whoever does end up with Dell will return it to its prior business tenets... Because as of now, they charge outrageous prices for shoddy pieces of junk. I do miss the Dell that had a commitment to their consumers... And that is not a shareholder problem specifically. Few publicly traded companies fall as far as Dell.

I wish lenovo would buy them. They make some damn cool computers. My dad's has finger print, facial recognition and encryption stock.... built into it

I think he'll buy Dell, beef up the stock a bit, watch it go under and collect his money. Whala Dell is the new emachines!

fmanchu said,
I think he'll buy Dell, beef up the stock a bit, watch it go under and collect his money. Whala Dell is the new emachines!

And how would he, now being a major shareholder / investor, benefit from that?

fmanchu said,
I don't think Carl Icahn needs to find a plan to finance it. He's worth 14+ billion.

yes he does... you never put all your own eggs into one basket... put some of the risk on others also and spread it out, he's not stupid... but I wish he'd stop getting in the way of companies trying to go private or sell themselves...

neufuse said,

yes he does... you never put all your own eggs into one basket... put some of the risk on others also and spread it out, he's not stupid... but I wish he'd stop getting in the way of companies trying to go private or sell themselves...


Exactly. Not to mention Net Worth != Liquid Assets in the first place...