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.