Dell is edging closer to an agreement to sell itself to a buyout consortium led by Michael Dell, its founder and chief executive, and private equity firm Silver Lake Partners in a deal that could top $24 billion, according to people familiar with the matter.
The buyout consortium is negotiating to take Dell private at $13 to $14 a share, two of the people said. This translates into an equity valuation for the Round Rock, Texas-based company of between $22.6 billion and $24.4 billion.
Michael Dell is expected to take majority ownership of the world’s third-largest personal computer maker while Silver Lake and Microsoft would become minority investors, three of the people said.
The transaction is set to be finalised over the weekend and the timetable could still slip. As part of the transaction, Michael Dell would contribute his existing stake of almost 16 per cent in the company toward gaining majority ownership, according to sources. The deal would mark the largest leveraged buyout since the global financial crisis. – (Reuters)
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