Michael Dell could lose Dell Inc. CEO job in rival buyout bid

“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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Michael Dell

25 Comments

  1. Who the hell cares about what happens at Dell? Beleaguered Apple is not taking advantage of the beleaguered Dell anyhow so what difference does it make if MSoft is gaining or losing or going sideways? Nothing is happening in either the Apple or the MSoft universe thanks to the once great Apple now dead in the water. Can’t wait to see silverhawk1’s repeat keys of p’s with the occasional, boring charge of “troll” dropped in. I am not a troll Mr. Silverhawk1 but what you are not is any form of intelligent.

    1. Because this is Schadenfreude at its best! After years (decades) of unrelenting pressure by Dell to war against Apple, Dell lost.

      There is Karma.

      And the constantly-improving quarterly financial reports by Apple in the face of worldwide economic disasters is a wonder to behold! Apple products are still great (and incrementally improving even though still at about 85% “perfect” – and never 100%) and not at a stand-still.

      1. Pete Peterson is the chairman of the Blackstone group, one of the potential buyers of Dell, and, next to Charles Koch, the biggest douchebag in the country. That post was satire, not trollery.

    2. I for one happen to care what happens at Dell and a lot of people here do as well, including cognativedisonance who gave a very nice reply.

      Dell being in the position they are in has most definitely been taken advantage of and you go through MDN to see the listing of every time Apple is worth X times more than Dell. It’s a lesson to others.

      At the time dumb Dell actually thought that the once great Apple now dead in the water and he will be reaping the consequences for a long time to come.

      From the way you are posting I’d say you are looking to join the ranks of dumb Dell and “he’ll never post here again Zune Thang”.

      I hope you fully understand the severity of what entity you are most likely dealing with, since you seem to be advertising the realm somewhat since your return. Making a deal with the horned one will get you your 15 minutes of fame all right, followed by an eternity of shame.

      Get some help before it’s too late.

      I’d shut it down and give the money back to the shareholders” — Michael Dell, Oct. 6, 1997, when asked what he would do if he ran Apple.

    1. My heartfelt sympathy goes out to your painful computer history. We will be here and happy to welcome you over from The Dark Side on your future purchase.

    1. Most companies on this planet make junk, often intentionally because a short-sighted consumer is too cheap to invest in durability.

      By your assessment, should all low-cost manufacturers be shut down?

      Not a bad idea actually. America seems hell-bent on filling its landfills with disposable cups & eating utensils because people are too lazy to load a dishwasher. How’s that for stupid long-term planning?

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