The private equity buyout of Dell Inc. (NASDAQ: DELL), about which investors were skeptical just two days ago, could happen soon. Rumors in the press suggest that the primary PE firm in the deal will be Silver Lake Partners and that several banks are prepared to make the loans necessary to close the transaction.
Source: courtesy Dell Inc.
The greatest hurdle at this point could be investor lawsuits. The buyout offer is expected to be between $12 and $13 a share. Dell’s prospects may have dimmed in the past two years, but investors could insist that the firm is worth more than the $18 at which it traded in the past year.
Buyout firm Silver Lake Partners, which is leading the deal, tapped Credit Suisse, Bank of America Merrill Lynch, Barclays and RBC late last year to finance a potential deal, the sources said on condition of anonymity, because details have not been made public. JPMorgan is advising Dell on a potential buyout of the $19 billion company, which would be one of the largest deals since the global recession. It will also allow Dell, which has been trying to become a one-stop shop for corporate technology needs as the PC market shrinks, to conduct that difficult makeover away from public scrutiny.
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
