Dell (DELL) Founder May Retain Majority Control of Company in 'Go Private' Deal
Dell, Inc. (Nasdaq: DELL) shares are in positive territory Wednesday amid more M&A chatter earlier.
According to reports, founder and CEO Michael Dell will use his own personal funds in a potential deal to go private. Dell currently holds about 15.7 percent of all Dell shares and might put in as much as $1 billion of his own funds to move a deal forward. The catch may be that he still wants to retain majority control of the PC giant.
In commuting his stake, worth about $3.6 billion or so, as well as the $500 million to $1 billion in cash, Dell would put up over half the $8 billion to $9 billion of equity needed. The rest of the transaction would be financed with debt and potentially some of the $11 billion in cash Dell said it had on the books as of last September.
Microsoft (Nasdaq: MSFT) and Silver Lake Management would put up about $1 billion to $2 billion apiece in a deal, Bloomberg reports this morning.
Evercore Partners, an advisor to Dell's special committee, said no other bids have been submitted as of yet. In addition, Dell might run a dividend recapitalization, or taking out debt to pay a special dividend as a way to return more value to shareholders.
J.P. Morgan is acting as main advisor to Dell on the sale. Shares are up about 0.3 percent.
According to reports, founder and CEO Michael Dell will use his own personal funds in a potential deal to go private. Dell currently holds about 15.7 percent of all Dell shares and might put in as much as $1 billion of his own funds to move a deal forward. The catch may be that he still wants to retain majority control of the PC giant.
In commuting his stake, worth about $3.6 billion or so, as well as the $500 million to $1 billion in cash, Dell would put up over half the $8 billion to $9 billion of equity needed. The rest of the transaction would be financed with debt and potentially some of the $11 billion in cash Dell said it had on the books as of last September.
Microsoft (Nasdaq: MSFT) and Silver Lake Management would put up about $1 billion to $2 billion apiece in a deal, Bloomberg reports this morning.
Evercore Partners, an advisor to Dell's special committee, said no other bids have been submitted as of yet. In addition, Dell might run a dividend recapitalization, or taking out debt to pay a special dividend as a way to return more value to shareholders.
J.P. Morgan is acting as main advisor to Dell on the sale. Shares are up about 0.3 percent.