Dell buy-out in disarray following rival bids
A $24bn move by Dell founder Michael Dell to wrest back control of the computer manufacturer is on shaky ground with the emergence of two hostile rival bids.
Private equity group Blackstone and activist investor Carl Icahn have both now tabled bids of their own following the closure of a 45 day bid window, prompting Dell’s board to say that they need more time to assess the new offers.
Several large investors have complained that Michael Dell’s $13.65 a share offer undervalues the company and have been agitating for the consideration of rival offers.
Blackstone is believed to have valued the firm at between $14.25 and $15 and will allow Dell shareholders to participate in the buy-out and have pointedly sounded out potential chief executive to take the helm – implying Michael Dell could be shouldered out.
Blackstone’s bid would be partly financed via the $5bn sale of Dell’s financial services division and would see Michael Dell net