Billionaire Carl Icahn, seeking to scuttle a buyout led by Silver Lake Management LLC, is asking Dell Inc. investors to bet on a computer maker beset by rising competition, tumbling demand and a bigger debt load.
Silver Lake Management LLC and partners are close to lining up about $15 billion in funds for a buyout of Dell Inc., the third-biggest maker of personal computers, said people familiar with the matter.
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.
Dell Inc.’s board is predicting another year of lackluster growth in fiscal 2014 as demand for personal computers ebbs, underscoring the urgency behind the company’s decision to be taken private, documents show.
Michael Dell is extending a lucrative relationship reaching back to the late 1990s with his pick of Silver Lake Management LLC, the largest technology-focused private-equity firm, to pursue a $24.4 billion leveraged buyout of his computer company.
Derivatives traders are beginning to speculate that the potential leveraged buyout of computer maker Dell Inc. marks the return of credit-busting takeovers as the cost of financing the deals gets ever cheaper.
Blackstone Group LP, the world’s biggest buyout firm, said first-quarter profit rose as market gains lifted the carrying value of its holdings. The shares fell after the company said a lackluster economy may curtail investing.
Dell Inc., the personal-computer maker planning to go private in a $24.4 billion deal, reported sales and profit that topped analysts’ estimates, reflecting server and software demand from companies even as PC sales drop.
Last August Michael Dell approached the board of the computer company he had founded in 1984. He had a proposition: He wanted to take Dell Inc. private and told the board he was the right person to do so, according to people familiar with the matter.
Dell Inc. is setting up meetings with shareholders to assess their demands for getting its $24.4 billion buyout done and also preparing a public response to critics of the deal, said people with knowledge of the situation.
Dell Inc., the computer maker that agreed to a $24.4 billion buyout this month, is coming under increased pressure to make the deal more attractive to shareholders who say the transaction undervalues the company.
Dell Inc. received proposals from Blackstone Group LP and billionaire Carl Icahn that would rival the $24.4 billion leveraged buyout offer from founder Michael Dell and allow shareholders to keep a stake in the company, according to people with knowledge of the matter.
Dell Inc., the personal computer maker being acquired by Silver Lake Management LLC and Chief Executive Officer Michael Dell, set the rate it will pay on $3.25 billion of loans it’s seeking to support the buyout, according to a person with knowledge of the transaction.
Now that Michael Dell has clinched a deal to take his company private, he faces the bigger challenge of turning a business falling behind in personal computers into a provider of high-margin cloud-computing tools and services.
Dell Inc. (DELL)’s path from personal- computer leader to buyout candidate mirrors the descent of an industry left behind by a raft of upstarts better equipped to capitalize on shifting consumer and business technology demands.
Michael Dell and Silver Lake Management LLC agreed to restrictions including a higher reverse breakup fee and limits on the ability to match bids for Dell Inc., striving to create a deal that would withstand shareholder scrutiny, said people familiar with the matter.
Microsoft Corp. is using a $2 billion loan to help finance Dell Inc.’s $24.4 billion buyout to bolster one of the largest makers of computers using Windows software and fend off competition from Google Inc. and Apple Inc.
Say this for Hewlett-Packard — the beaten-down computer maker still has chutzpah. A little more than an hour after rival Dell said it would go private in a $24.4 billion leveraged buyout, Hewlett-Packard made a bid to nab customers by saying Dell faces “a very tough road ahead.”