Dell founder may control PC maker after buyout - Bloomberg

NEW YORK Wed Jan 30, 2013 7:57pm IST

Michael Dell Chairman and CEO of Dell Inc. arrives at the launch event of Windows 8 operating system in New York, October 25, 2012. REUTERS/Lucas Jackson/Files

Michael Dell Chairman and CEO of Dell Inc. arrives at the launch event of Windows 8 operating system in New York, October 25, 2012.

Credit: Reuters/Lucas Jackson/Files

Related Topics

Stocks

   

NEW YORK (Reuters) - Dell Inc'sDELL.O founder and chief executive may pay as much as $1 billion out of his personal fortune to assume control of the world's No. 3 PC maker in a leveraged buyout, Bloomberg News reported on Wednesday citing people familiar with the matter.

Michael Dell may contribute equity financing of $500 million to $1 billion in addition to his approximately 16 percent stake in Dell, worth about $3.6 billion, to push his ownership above 50 percent and have majority control, Bloomberg said.

Michael Dell's partners - private equity firm Silver Lake and giant software company Microsoft Corp(MSFT.O) - would contribute $1 billion to $2 billion each toward an equity check of $8 billion to $9 billion, Bloomberg said.

Details of the equity financing were still being finalized while making sure Dell has explored all possible alternative options, including a sale to other buyers, Bloomberg said.

Representatives of Dell, Silver Lake and Microsoft did not immediately respond to requests for a comment.

Dell has formed a special committee of its independent directors and has hired Evercore Partners Inc(EVR.N) to assess whether the company is getting the best deal for shareholders and not one that is just in the best interest of Michael Dell, people familiar with the matter have previously told Reuters.

(Reporting by Greg Roumeliotis in New York; Editing by Maureen Bavdek)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Press Event

Press Event

Modi takes tea, but no questions, in first press event as PM.  Full Article 

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage