KKR Eyed Dell, Isn’t Bidding

Jan 17 2013 | 9:08am ET

While Silver Lake Capital and TPG Capital see value in taking Dell Inc. private, another prominent private equity fund isn’t so sure.

Kohlberg Kravis Roberts considered acquiring Dell in a leverage buyout, but is not currently bidding for the troubled computer-maker, The Wall Street Journal reports. It is unclear what, if anything, scared KKR off from moving on Dell; it reportedly sees a lot to like in the company, including its franchise value, cash flow, the growth in some of its business and Dell’s falling stock price.

KKR has also previously worked with Silver Lake.

Silver Lake and TPG are reportedly in “serious” talks about taking Dell private and a deal, involving one or both of the firms, could come within six weeks. A pension fund could also join a bidding group involving the private equity shops, the Journal reports.

Dell founder Michael Dell retook the reins at the company five years ago. Dell, whose MSD Capital runs a hedge fund, could win greater flexibility and maneuverability if his company was privately-owned; Dell's profits fell almost 50% in its most recent fiscal quarter.


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