‘Dell’ Tagged Posts

Silver Lake’s bid for Dell started at $11.22 per share: source

Private equity firm Silver Lake Partners offers as little as $ 11.22 per share for Dell Inc. in mid-2012, when the first discussion of a takeover ...

 

Silver Lake's bid for Dell started at .22 per share: source
Private equity firm Silver Lake Partners offers

as little as $ 11.22 per share for Dell Inc. in mid-2012, when the first discussion of a takeover by the founder and CEO Michael Dell, according to a person familiar with the situation.

Since then, 5 February this year, Silver Lake and Michael Dell has its offer to the world No. 3 maker of personal computers private 13.65 per share to take. At $ 24.4 billion, is the largest private equity-led takeover since the financial crisis of 2008.

When the bid was announced, the price represents a premium of 25 percent on the share price before news of the offer, but Dell’s share price closed at 14, $ 31 Friday.

The computer maker has said repeatedly that the offer comes after a thorough evaluation and negotiations, and is considered fair to the shareholders and this vision will probably be re-emphasized in a proxy filing with the SEC come.

But some analysts say that Michael Dell and Silver Lake can possibly increase its offer to try to satisfy investors within Dell and the South East who complain that society underestimates.

Michael Dell tries the transfer of the undertaking to complete a manufacturer of low-margin PC to a service provider to be. The makeover has become more urgent than the PC market shrinks. Analysts say that this can best be achieved if the company is private, away from the pressures of shareholders and public scrutiny taken.

Discussions

BID BACK TO MIDDLE 2012

CNBC reported for the first opening of the offer and, depending on the television business, private equity house KKR & Co. LP discussed an offer for Dell $ 12 to $ 13 per share decreased, but the offer in December last year.

Several large shareholders have their opposition to the application, including Southeastern Asset Management and T. Rowe Price.

A second person familiar with the situation told Reuters that South East, Dell independent main shareholder, had the possibility of a leveraged buy Michael Dell was increased in 2012, where he was interested in contributing to equity in relation to a Dell case.

But two sources familiar with the thinking of the South-East Reuters the company had not touched a sort of agreement to private equity led during the interviews with Michael Dell to acquire last summer.

These sources indicated Southeast proposed transaction similar to that described in a Feb. 8 letter to the council, when he called a “tender to the Dutch ‘or public offer to all shareholders, the two sources.

Southeast objection to the current bid, like that of many other investors is that the salvation so seriously underestimated the society.

All sources asked not to be named because the matter is not public. Dell has not responded to requests for comment and Southeast declined to comment.

clearer picture of the negotiations leading to the agreement is expected in the last week of March arise in a proxy filing society.

Icahn builds Dell stake, complicating buyout: CNBC

 

Icahn builds Dell stake, complicating buyout: CNBC

activist investor Carl Icahn has built a stake of nearly 100 million shares of Dell Inc. and hopes that the PC manufacturer to perform a leveraged recapitalization, which attempts founder Michael Dell to take the private company, CNBC reported.

Icahn, known for management to shake, has an interest in Dell 6 percent of the company collected, CNBC cites sources close to the capital as saying Wednesday.

This would be the billionaire investor known for demanding business strategy, the largest shareholder after Southeastern Asset Management, based on already available data.

The network reported that Mr. Icahn Dell wanted to borrow as much as $ 9 billion and a special dividend to the shareholders, and probably against the agreement.

Shares of Dell closed almost 1.8 percent higher than $ 14.32.

Icahn did not respond to requests for comment.

Icahn on stage is usually companies – and their boards – on guard, because the outspoken activist investor has a reputation for aggressively demanding change by implementing investments in target companies

.

Michael Dell has signed an agreement to acquire privately No. 3 maker of personal computers, has made it into a dormitory in 1984 and works with the private equity house Silver Lake and Microsoft Corp. But 24400000000 dollar deal is set against a number of major shareholders from Dell, including Southeastern Asset Management, said the deal significantly undervalued the company.

Southeast wondered whether to partner with another company to a counter-offer many of Michael Dell, the Wall Street Journal to try, citing people familiar with the matter.

Southeast demanded Tuesday that Dell opens the books, signage, it would become more active in their opposition to the offer.

Blackstone Private Equity Group is looking Dell books under the go-shop period, although the group’s interest is preliminary at this stage, a source familiar with the situation.

Blackstone declined to comment.

A special committee of the board of directors of Dell said earlier Wednesday the pending sale of the PC manufacturer was the best option for shareholders, despite opposition from its shareholder interest outside.

The committee, that the situation of Dell analyzing more than five months, said he also considered alternatives such as leveraged recapitalizations, changing dividend policy, the sale of parts of the company and working with the business plan the company today.

active investment

Ichan, a billionaire investor who made his name in the 1980s with the hostile takeover of TWA, is known for its colorful speech – as during his now infamous expletive prey to the antenna spat with fellow -Wall Street player Bill Ackman on the future of Herbalife. It is also famous for having led fierce battles with management about what he sees as the right business strategy.

Some of his recent fights include an attempt to trucks and military vehicles OshKosh Corp., which was eventually abandoned support, and campaign for a dividend higher oil services company Transocean.

Beyond offering and buying shares on the public markets, the investor also lawsuits as a long struggle against Hollywood studio Lions Gate.

More recently Icahn reported a huge profit after buying a nearly 10 percent stake in Netflix Inc. in September, when he categorically stated that buyers are interested in video-streaming service waiting in the wings – not have emerged.

participation Dell Icahn likely to make it difficult for Michael Dell to buy the company, especially if the opposition decision.

Dell Special Committee is currently asking propose alternatives to many of Michael Dell. Investment bank Evercore conducts this process, which ends March 22.

Michael Dell’s goal is to make the difficult transition from a Dell computer manufacturer to facilitate a provider of business services as a private company, far from the eyes of Wall Street.

But since the deal was announced, some investors have said that the price was too low.

Shareholders representing nearly 14 percent of Dell’s actions, on the southeast with a participation of more than 8 percent, including options, said they would vote against the proposed acquisition. The third-largest shareholder, T. Rowe Price, has opposed the agreement.

(report Soyoung Kim, Poornima Gupta and Liana B. Baker, edited by Gerald E. McCormick, Grant McCool, Bernard Orr and Carol Bishopric)

Exclusive: Southeastern joined by other Dell investors – source

 

Exclusive: Southeastern joined by other Dell investors - source

At least three of Dell Inc. Top 20 shareholders support decision Southeastern Asset Management to vote against the acquisition of $ 24.4 billion manufacturer of PC # 3, led by CEO Michael Dell, a person close the file.

Among the incumbents who support Southeast Harris Associates LP, Yacktman Asset Management LP and Pzena Investment Management LLC, representing approximately 3.3 percent keep in Dell, the person said.

Yacktman Harris were not immediately available for comment. President Richard Pzena Pzena says many Dell must be in the range of $ 20 per share or the company should other options.

Michael Dell coughs up $750 million cash to buy out Dell

 

Michael Dell coughs up 0 million cash to buy out Dell

Michael Dell and his investment firm ponying up $ 750 million in cash for the purchase of $ 24.4 billion Dell Inc. into the largest private equity buyout funds to help bankroll, since the financial crisis.

The founder and CEO of Dell this week signed an agreement for the private company he founded from a dorm to acquire in 1984, in collaboration with the private equity house Silver Lake and Microsoft Corp.

Michael Dell pays $ 500 million of his own money, and management MSDC – a subsidiary of the investment firm, MSD Capital -. Contribute $ 250 million, according to a company filing on Wednesday

Dell Inc. also said it would repatriate $ 7.4 billion in cash parked abroad to fund the transaction. This may dismay of some shareholders, as a heavy tax generally levied on the cash back from abroad.

operation, that 24 years of Dell rocky run on the Nasdaq as the once dominant PC maker is struggling to revive growth, is subject to approval by a majority of the shareholders -. with the exception of Michael Dell himself

A number of shareholders, including leading investors Frederick “Shad” Rowe Greenbrier Partners, voted against the agreement, to protest against the lack of precision as well as a potential conflict of interest with Michael Dell, the company the unique shareholder with a large 16 percent of the shares.

“Some shareholders happy. But there are people who think that it is a raw deal,” said Shaw Wu, analyst at Sterne Agee, who spoke with a number of shareholders of Dell since the announcement, but declined to give details.

And so it begins

Dell is considered a model of innovation as recently as the early 2000s, pioneered online ordering custom PCs and works closely with Asian suppliers and manufacturers to ensure production extremely layer. But he missed the shift from industry to high tablet computers, smart phones and consumer electronics high power devices such as music players and game consoles.

Frames

said Tuesday the company is sticking to a strategy of expanding its range of software and services for large enterprises, with the goal of becoming a provider of business services – as very profitable IBM. They played speculation the company may spin off the PC business with low margins on which he made his name.

The company does not have many details about what he would do differently as a private entity, some angry shareholders who said they need more information to determine than the price $ 13.65-a-share – a premium of 25 percent of Dell’s stock price before the takeover talks flight in January -. was enough

Wednesday, an individual shareholder filed the first complaint in Delaware, in an attempt to stop the acquisition. The process – which is class-action status – suggests that the $ 13.65 per share grossly underestimated the long-term prospects of the company

offer

“Engaging in. Closing process now – in the middle the transfer of the undertaking of a supplier of PC software and full service business solutions provider – the board is to enable defendants Michael Dell and Silver Lake for Dell to obtain cheap, “read the complaint filed by Catherine Christner.

Dell, a global manufacturer of three personal computers, fell details of equity and debt financing for redemption guaranteed filing Wednesday.

Silver Lake puts up $ 1.4 billion, while banks like Bank of America, Barclays, Credit Suisse and RBC provide approximately $ 16 billion loans and other forms of financing.

filing Wednesday is also shown that in certain circumstances, if the merger can not be performed, Michael Dell and Silver Lake may have to pay the termination of up to 750 million in the company.

Dell to go private in landmark $24.4 billion deal

 

Dell to go private in landmark .4 billion deal

Michael Dell Inc. Dell, private $ 24.4 billion in the biggest leveraged buyout since the financial crisis, an agreement that allows the billionaire chief executive to try to restore the computer business struggling to survive without a investigation of Wall Street.

The transaction, which requires shareholder approval, would end a run of 24 years on public procurement for a company that is designed in a dormitory and quickly reached the top personal computing industry worldwide – must be an also-ran in the last ten years, the price of PC crumbled and customers moved to tablets and smartphones.

Dell executives said Tuesday that the company will stick to a strategy of expanding the supply of software and services for large enterprises, with the goal of becoming a full-service provider of business services in the form of very profitable IBM. He downplayed speculation that Dell might spin off the PC business with low margins on which he made his name.

Dell did not elaborate on what he would do differently as a private entity to skeptics who say that he missed the shift from industry to high tablet computers, smart phones to convince consumer devices and high power electronic devices such as music players and game consoles. Sources of knowledge of the matter said card Dell has any recapitalization of a dissolution of the company before the path of LBO, but not extensive.

“A Dell is probably private costs aggressively, in our opinion. Restructuring But we think that only postpones the inevitable, creating a value trap,” Critical Inc. said analyst Cindy Shaw. “Dell must do more than reduce the cost structure. Needs innovate.”

The transaction will be financed by cash and shares of Michael Dell, money from private equity firm Silver Lake, a loan of $ 2 billion, Microsoft Corp., and debt financing from a consortium of banks. The price of $ 13.65 per share represents a premium of 25 percent of Dell’s stock price before the news of an agreement during flight in January.

The company will now carry a 45-day “go-shop” where others can offer higher.

“While we hope for a better price high, we hope that the Board Dell does a good job in making an open offer to a third party and consider all strategic options done,” said Bill Nygren Who manages the 7.3 Billion Oakmark Fund and $ 3.2 billion Oakmark Select Fund, a position of 250 million Dell. “Should we hear evidence to the contrary, we will make a ruckus.”

Some competitors Dell took pot shots at the agreement in unusually sharp comments that show how the battle is fierce in a standardized PC industry, which has struggled to a decrease in the turnover times worldwide.

Hewlett-Packard Co., which has suffered from years of turmoil faced with challenges in the PC industry, said in a statement that many Dell would “allow existing customers and innovation on the sidewalk,” and promised every opportunity.

Lenovo, which largely consists of the former IBM PC unit, called “distraction financial maneuvers and major changes in the policy” of his rival with emphasis on its own stability and strong financial position.

Dell is considered a model of innovation as recently as the early 2000s, pioneered online ordered-configured PC and work closely with component suppliers and manufacturers Asian ensure production costs are extremely low. But in the fourth quarter of 2012, the share of the global PC market, Dell slipped to just over 10 percent, from 12.5 percent a year earlier as shipments plummeted 20 percent, according to IDC house.

Michael Dell returned to the company as CEO in 2007 after a short break, but was unable to restore to work so far. Dell emphasis on enterprise computing in recent years have led to results – and critics brands compete against incumbents, including IBM and HP, will not be easy, no matter what business structure

.

PC sales are still the majority of sales of Dell. Analysts say the restructuring has continued to focus on the business market may lead to job losses and more expensive acquisitions. The company has acquired a number of major software and service companies in recent years, looking to reconfigure as a provider of large-scale technology for large companies.

“We recognize that this process will take more time,” Chief Financial Officer Brian Gladden told Reuters. “We’re going to invest, and we must be patient in order to execute the strategy. Structure and a new private company, we have the time and flexibility to really pursue and achieve strategy-end solutions.”

Gladden said the company’s strategy would “generally remain the same” after the transaction is concluded, but “we do not control and limitations associated with operating as a public company. “

Michael Dell, who quietly built a very successful investment, even if the happiness of his eponymous company relaxed, wearing his 16 percent share of the equity Dell to contract, as well as cash from his capital MSD. Bank of America Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets provides debt financing.

Shares of Dell rose 1.2 percent to $ 13.43 in morning trading.

Buy RECORD

Analysts said Dell would be more versatile as a private company, but it will still face the same difficult market conditions. Successful Transition famous IBM hardware vendor for enterprise IT partner took place when he was trading on public markets.

There is little history that the proposed “going private makes such a transition easier. Freescale, the former semiconductor division of Motorola, was privatized in 2006 to $ 17.6 billion by a group of private equity firms Blackstone Group LP, including the Carlyle Group and TPG Capital LP. Analysts say the debt due impair its ability to compete in the chip industry is capital intensive. Freescale cut slightly less than 5 percent of the workforce in the last year he continued to restructure.

Dell

agreement would be the largest private equity-backed, leveraged buyout by Blackstone Group LP are, the Hilton hotel chain in July 2007 to more than $ 20 billion and is the 11th largest ever recorded.

The parties expect the transaction to close to the end of 2014 to the second quarter of Dell, which ends in July. Negotiations News published on January 14, but they started in the latter part of 2012. Michael Dell had the thought of going private so far in 2010 recognized .

involvement of Microsoft in the event piqued much speculation about a renewed strategic partnership, but the software company provides debt financing and Dell said that there are no conditions relating to specific business transaction. Dell has long been loyal to Microsoft Windows operating system , in the heart of the PC business had since its inception.

ready

Microsoft will take the form of a subordinated note of 10 years, the “thing close to fairness”, with nearly 7 percent to 8 percent interest, a source familiar with the situation told Reuters.

Banking sources said the package

of debt financing for the transaction amounts to between $ 11 billion and $ 12 billion to the LBO support. financing ultimate size depends on what part of the existing notes of the company is still not resolved, the sources added. Banks must begin to reach hand to other lenders for loan syndication starting on Tuesday.

JP Morgan and Evercore Partners

were financial advisors, and Debevoise & Plimpton LLP was the legal advisor to the Special Committee of the Board of administration Dell. Goldman Sachs acted as financial advisor and Hogan Lovells as legal advisor to Dell.

Wachtell, Lipton, Rosen & , Katz was legal adviser Michael Dell. BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets were the financial advisors of Silver Lake, and Simpson Thacher & Bartlett LLP is legal advisor.