Lenovo Group Ltd., which agreed to buy International Business Machines Corp.’s low-end server unit yesterday, beat out prospective bidder Fujitsu Ltd. because that company would have needed several more weeks to conduct due diligence, a person with knowledge of the negotiations said.
Dell Inc. responded to its biggest outside shareholder by arguing that its leveraged buyout deal offers shareholders “an attractive and immediate premium,” after Southeastern Asset Management Inc. said the proposal undervalued the personal-computer maker.
Michael Dell set up a family office in 1998 that diversified his wealth beyond stock in the computer maker he had started 14 years earlier. Now, as he seeks to take Dell Inc. private, the same investment firm may provide pivotal financing for what would be the largest buyout since 2007.
T. Rowe Price Group Inc. and more than 100 other Dell Inc. shareholders who control a combined 47.5 million shares spurned the company’s buyout offer to seek a potentially higher payout through the Delaware court system.
Dell Inc. directors’ move to change shareholder voting rules for founder Michael Dell’s buyout bid worth as much as $24.9 billion has tainted the deal, investors challenging the offer said in court filings.
Dell Inc. founder Michael Dell will only consider backing a buyout by Blackstone Group LP if the private-equity firm guarantees he can remain as chief executive officer, according to a person familiar with the discussions.