Author Topic: Dell nears buyout that could top $24 billion  (Read 658 times)

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Offline Cincinnatus

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Dell nears buyout that could top $24 billion
« on: February 01, 2013, 10:56:30 PM »
Dell Inc is edging closer to an agreement to sell itself to a buyout consortium led by Michael Dell, its founder and chief executive, and private equity firm Silver Lake Partners in a deal that could top $24 billion, people familiar with the matter said on Friday.

The buyout consortium is negotiating taking Dell private at $13 to $14 per share, two of the people said. This translates into an equity valuation for the Round Rock, Texas-based company of between $22.6 billion and $24.4 billion.

Dell shares were up 2.5 percent at $13.57 in afternoon trading.

http://www.reuters.com/article/2013/02/01/us-dell-buyout-idUSBRE91009K20130201

$24 billion. Nice piece of change.
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Offline Rapunzel

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Re: Dell nears buyout that could top $24 billion
« Reply #1 on: February 02, 2013, 12:34:28 AM »
My uncle resigned from their Board of Directors when Clinton nominated him to be SoD...he had helped steer both Dell and Oracle through their start-ups and then served on their boards.

Offline Oceander

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Re: Dell nears buyout that could top $24 billion
« Reply #2 on: February 02, 2013, 09:27:26 AM »
Dell Inc is edging closer to an agreement to sell itself to a buyout consortium led by Michael Dell, its founder and chief executive, and private equity firm Silver Lake Partners in a deal that could top $24 billion, people familiar with the matter said on Friday.

The buyout consortium is negotiating taking Dell private at $13 to $14 per share, two of the people said. This translates into an equity valuation for the Round Rock, Texas-based company of between $22.6 billion and $24.4 billion.

Dell shares were up 2.5 percent at $13.57 in afternoon trading.

http://www.reuters.com/article/2013/02/01/us-dell-buyout-idUSBRE91009K20130201

$24 billion. Nice piece of change.

I wonder what the buy-out group's exit strategy is.  Frequently, taking a business like Dell private is a way to do the sorts of paring, tweaking, and revamping needed to revitalize a company that are difficult if not impossible to accomplish with a publicly-owned company.  The theory being that after the "tough love" the resulting business will be much more valuable than when it was purchased, allowing the buy-out group to realize a good ROI.
« Last Edit: February 02, 2013, 09:28:26 AM by Oceander »

Offline SouthTexas

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Re: Dell nears buyout that could top $24 billion
« Reply #3 on: February 03, 2013, 10:17:37 AM »
Hope they don't start trimming jobs, daughter in law works for them.


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