Posted by: youngragingbull | February 5, 2013

Dell to go private in $24.4B deal

Michael Dell struck a deal to take Dell Inc. private for $24.4 billion in the biggest leveraged buyout since the financial crisis, partnering with the Silver Lake private equity firm and Microsoft Corp. to try to turn around the struggling computer company.

The deal, which requires approval from a majority of shareholders excluding Dell himself, would end a 24-year run on public equity markets.

Dell executives said on Tuesday that the company, which has struggled as of late in a declining market, will stick to a strategy of expanding its software and services offerings for large companies, with the goal of becoming a full-service provider of corporate computing services in the mold of the highly profitable IBM. They played down speculation that Dell might spin off the low-margin PC business on which it made its name.

Dell did not give specifics on what it would do differently as a private entity, angering some shareholders who said they needed more information to determine whether the $13.65-a-share deal price – a 25 percent premium over Dell’s stock price before buyout talks leaked in January – was adequate.

Source: Reuters

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