October 18, 2017

Blackstone bid could slow down Dell buyout

Olawale AdeyinaMar 19, 20132min

Blackstone Group LP (BX) is weighing a bid for Dell Inc. (DELL), the computer maker seeking offers to rival the proposed $24.4 billion buyout by its founder and Silver Lake Management LLC, said people with knowledge of the matter.

According to Bloomberg, the asset management firm is supposedly considering a bid that could out-do what Silver Lake offered for the Dell acquisition. People familiar with the matter told Bloomberg that Blackstone has not yet made a decision and that it may bid as part of a group of investors. Reportedly, Blackstone has already reviewed Dell’s finances after signing a non-disclosure agreement.

Dell announced in February that it had plans to take the company private via a $24.4 billion, or $13.65 per share, buyout by its founder and CEO Michael Dell, who owns about 14 percent of Dell’s common shares, and the private equity firm Silver Lake. Microsoft also kicked in a $2 billion loan.

Under the Silver Lake merger agreement, Dell’s board can look for a better proposal up through March 22. If a person or company makes a successful competing bid during this “go-shop” period, that person or group will be subject to a $180 million termination fee.

The Silver Lake buyout has to get approval from a majority of Dell’s shareholders in order to go through. If the deal is successful, it will be the largest technology leveraged buyout since the financial crisis hit in 2008.

Olawale Adeyina

Jesus Boy, Tech Enthusiast, Team Lead: TechCityng.com, GreenStreetMedia.Ng



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