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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.