TIN BOX FLOGGER Dell is close to completing its buyout deal with an announcement expected at the start of next week.
Dell has been talking with private equity firms to set up a leveraged buyout that will take the company private, with Michael Dell reportedly pitching in $1bn of his own money to make the deal happen. Now the firm is expected to announce a deal as soon as Monday with Silver Lake Partners and Microsoft in the frame for minority stakes in the company.
Michael Dell is expected to take majority ownership of the firm, according to Reuters. The investment group has reportedly secured $15bn worth of debt refinancing from Barclays, Bank of America Merril Lynch, Credit Suisse and RBC Capital, while Barclays is also advising Silver Lake Partners on the deal with JP Morgan providing advice to Dell.
As part of Michael Dell's majority ownership of the private firm, he reportedly will sell his 16 percent stake in the public company to... himself and his partners.
Dell is trying to move away from selling low-margin desktop and laptop PCs to get into enterprise hardware and services, something that IBM did almost a decade ago. By taking the firm private, Dell must be looking forward to making changes to the business without having to please any Wall Street investment analysts. µ