The failure of Energy Future Holdings Corp., known as TXU Corp. when KKR & Co., TPG Capital and Goldman Sachs Capital Partners acquired it for $48 billion in 2007, and the stumbles of other huge deals of the past decade have reshaped how major buyout firms go about their trade.
When Ken Duberstein’s secretary told him Michael Dell was on the phone on the afternoon of July 31, there was little doubt about the topic. That morning, Dell Inc.’s special board committee had rejected the latest offer from Dell to take the personal-computer company private, a battle that was dragging into its 11th month.
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.
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.
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.
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.
When Michael Dell took his company public in 1988, the personal-computer maker’s biggest competitors were International Business Machines Corp., Compaq Computer Corp. and Gateway 2000. The headstrong founder was later quoted joking that his daughter’s first words were to “kill IBM” and his other rivals.
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.
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.”