Dell announced its plans to back turn itself back into a private company via a leveraged buyout with help from a $2 billion loan from Microsoft, in early February. The plan, which would pay owners of the company's stock $13.65 a share, is already being challenged by two alternative buyout offers from outside parties.
Dell's upcoming XPS 18 all-in-one Windows 8 touchscreen PC; a mix of tablet and desktop
While Microsoft may be chipping in to help raise the $24.4 billion needed for Dell's official leveraged buyout, a new filing made late on Friday with the U.S. Securities and Exchange Commission states that the launch of Microsoft's Windows 8 OS was part of the reason why Dell felt now is the time for its change from a public to a private business.
Dell's document states that, in the company's opinion, there are a number of challenges that are facing the PC industry. They include " ... the uncertain adoption of the Windows 8 operating system and unexpected slowdowns in enterprise Windows 7 upgrades." Dell also cited a general sales decline in the worldwide desktop and laptop PC market, along with an increase in tablets and smartphone sales from consumers, which Dell believes people could buy as substitutes for new PCs.
The SEC filing did not directly address the two competing bids for Dell from the Blackstone Group and billionaire Carl Icahn. However, it did say that, in its opinion, there were "a number of risks and challenges" if Dell were to remain a public company. In related news, Reuters reports, via unnamed sources, that Dell founder and CEO Michael Dell met privately with the senior managing directors of the Blackstone Group earlier this week. The report did not state what was discussed at the meeting nor its outcome.
Source: SEC | Image via Dell