TechnesstivityDell Goes Private For $24.4 Billion
PC making giants, Dell, confirms that it is going private in a $24.4 billion, or $13.65 a share deal. Dell’s Founder and CEO Michael Dell, who has 14 percent of Dell shares teamed up with Silver Lake Partners to acquire the company while Microsoft is also pushing in a $2 billion loan.
The deal is subject to shareholder approval and should be wrapped up before the close of Dell’s fiscal second quarter, which ends in July. If approved, the deal would be the largest corporate privatization since the financial crisis. The deal will allow the company to try to turn itself around without the pressure of shareholder expectations.
Upon completion of the deal, Michael Dell will continue to lead the company as CEO. He also will maintain a significant equity investment in the company by contributing his shares of Dell to the new company, as well as by making a “substantial,” additional cash investment.
Dell and rival Hewlett-Packard have had trouble competing with up-and-coming Asian rivals like Lenovo and Asus. Lenovo in late 2011 surpassed Dell to become the world’s second-largest provider of PCs. The company has said it remains committed to the PC market and that this deal is aimed at giving the company the time to turn itself around.
Source: CNet
