“Michael Dell kicked off the process to take Dell Inc. private. Now as other potential bidders crowd into the picture, Mr. Dell may end up losing control of his company,” Shira Ovide reports for The Wall Street Journal.
“Blackstone Group LP and activist investor Carl Icahn expressed interest in the computer maker before a key deadline for offers expired Friday, with each notifying a special committee of Dell’s board that they are working on firm bids for the Round Rock, Texas, company, people familiar with the matter have said,” Ovide reports. “Any firm offers that come in will go up against a proposed $24.4 billion buyout of Dell led by Mr. Dell and private-equity firm Silver Lake Partners that was announced last month. The proposed buyout, which works out to $13.65 a share, has been criticized by some shareholders as undervaluing the company.”
Ovide reports, “Mr. Dell, 48, who owns 14% of Dell and founded the company in 1984 out of his dorm room, has potentially the most to gain if the Silver Lake-led buyout wins and perhaps the most to lose if the offer is unseated. The Silver Lake buyout would give Mr. Dell majority control in Dell’s equity and a shot at leading efforts to revive the company, as he would remain chairman and chief executive, handing him more formal control over the company. But if Blackstone, Mr. Icahn or others unseat the Silver Lake deal, Mr. Dell may wind up on the sidelines without a say in the company. ”
Read more in the full article here.
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