Monday, 25 March 2013 | Antoine Gara
Dell Reboots Takeover With Blackstone, Icahn Offers
NEW YORK ( TheStreet) — The biggest private equity buyout since the financial crisis has received a reboot after Dell ( DELL) said on Monday it has two new takeover proposal that trump a $13.65 a share offer the company struck with founder Michael Dell and private equity firm Silver Lake Partners in early February.
A special committee seeking a higher takeover price for Dell said that a consortium of investors led by the Blackstone Group ( BX) have submitted a $14.25 a share propsal that would allow Dell shareholders either to receive a cash payment at that value or continue to own their publicly traded holding. Francisco Partners and Insight Venture Management will participate in the Blackstone investor group.
Dell also received a $15 a share bid from Carl Icahn’s holding company, Icahn Enterprises (IEP), which will roll the activist investor’s $1 billion stock stake into a takeover and use a mix of stock, debt and financing from Dell’s factoring business to fund the deal.
To be seen is whether the Michael Dell-led consortium will try to improve on their February 5 offer to take the struggling PC giant private.
Were Michael Dell to remain a participant in negotiations, he will now have disclose his projections for valuing a bid notes Alex Khutorsky, a managing director at M&A advisory The Valence Group.
“Any competitor coming in with a bid between Michael Dell’s own private bid and his public valuation for the company will force him to either give up the company or raise his offer and diminish the return.”
Click here to read full article at www.thestreet.com