By - Serena Saitto and David Carey
Category - Attractions In Santa Clarita
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| Attractions In Santa Clarita |
NEW YORK — Blackstone Group is weighing a bid for Dell, the computer maker seeking offers to rival the proposed $24.4bn buyout by founder Michael Dell and Silver Lake Management, said people with knowledge of the matter.
Blackstone may bid as part of a group including other investors, said one of the people, who asked not to be named.
The private-equity firm has not made a decision, another person said.
Under the go-shop provision of the Silver Lake merger agreement, Dell’s board has until March 22 to seek superior proposals, and can negotiate beyond that date if it receives an offer it deems serious.
An offer from Blackstone would increase the pressure on Michael Dell and Silver Lake to raise their $13.65-a-share bid after Dell’s two biggest outside shareholders already opposed what would be the largest leveraged buyout of a technology company since the financial crisis.
Billionaire Carl Icahn has also amassed a stake and is pressing for a special dividend over a buyout. Still, it may be difficult for new bidders to turn Dell around without the CEO’s buy-in as PC business slumps, said Bloomberg Industries analyst Anand Srinivasan.
"It’s very hard to put a value on a business that’s in structural decline," he said. "Going private is all about how much value you can create."
Blackstone, Hewlett-Packard and Lenovo have inspected Dell’s books after signing nondisclosure agreements, people familiar with the matter said this month. Michael Dell is trying to take the PC maker private after a quarter century as a publicly traded company, as business has shifted toward cloud computing, where storage and software are delivered at low cost over the internet.
Dell spokesman David Frink declined to comment. Blackstone spokesman Peter Rose was not immediately available.
Dell’s shares climbed as high as $14.69 in after-hours trading on Tuesday, or 7.6% above the bid from Michael Dell and Silver Lake, signalling that investors are betting the price tag will ultimately exceed the $24.4bn offer. In German trading on Tuesday, the stock traded at the equivalent of $14.52 as of 9.30am in Frankfurt.
Mr Icahn this month asked Dell’s directors to pledge they will implement his $9-a-share special dividend proposal if shareholders reject the Michael Dell-led offer. Otherwise, Mr Icahn said, he will start a proxy fight and seek to replace the board with his own slate.
At least five analysts this month said a bid for Dell could reach as high as $15 a share.
Blackstone may bid as part of a group including other investors, said one of the people, who asked not to be named.
The private-equity firm has not made a decision, another person said.
Under the go-shop provision of the Silver Lake merger agreement, Dell’s board has until March 22 to seek superior proposals, and can negotiate beyond that date if it receives an offer it deems serious.
An offer from Blackstone would increase the pressure on Michael Dell and Silver Lake to raise their $13.65-a-share bid after Dell’s two biggest outside shareholders already opposed what would be the largest leveraged buyout of a technology company since the financial crisis.
Billionaire Carl Icahn has also amassed a stake and is pressing for a special dividend over a buyout. Still, it may be difficult for new bidders to turn Dell around without the CEO’s buy-in as PC business slumps, said Bloomberg Industries analyst Anand Srinivasan.
"It’s very hard to put a value on a business that’s in structural decline," he said. "Going private is all about how much value you can create."
Blackstone, Hewlett-Packard and Lenovo have inspected Dell’s books after signing nondisclosure agreements, people familiar with the matter said this month. Michael Dell is trying to take the PC maker private after a quarter century as a publicly traded company, as business has shifted toward cloud computing, where storage and software are delivered at low cost over the internet.
Dell spokesman David Frink declined to comment. Blackstone spokesman Peter Rose was not immediately available.
Dell’s shares climbed as high as $14.69 in after-hours trading on Tuesday, or 7.6% above the bid from Michael Dell and Silver Lake, signalling that investors are betting the price tag will ultimately exceed the $24.4bn offer. In German trading on Tuesday, the stock traded at the equivalent of $14.52 as of 9.30am in Frankfurt.
Mr Icahn this month asked Dell’s directors to pledge they will implement his $9-a-share special dividend proposal if shareholders reject the Michael Dell-led offer. Otherwise, Mr Icahn said, he will start a proxy fight and seek to replace the board with his own slate.
At least five analysts this month said a bid for Dell could reach as high as $15 a share.
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