Silver Lake In Talks For $23 Billion Dell Deal

Feb 5 2013 | 2:24am ET

Private equity firm Silver Lake Partners is nearing a deal to take computer-maker Dell Inc. private in what would be the largest buyout since the financial crisis.

Silver Lake is working with Microsoft and Dell founder and CEO Michael Dell on a deal valued at $23 billion. The sides were still in talks late yesterday on an offer of between $13.50 and $13.75 per share for the company, The Wall Street Journal reports.

Silver Lake would invest about $1 billion in Dell and Microsoft $2 billion. Microsoft's stake would be in the form of a subordinated debenture, and the software giant isn't expected to get seats on Dell's board or a role in the company's governance. Michael Dell, who owns 16% of Dell, would also contribute $700 million from his investment firm and would remain Dell's largest shareholder.

Four banks would arrange about $15 billion in debt to fund the buyout, according to the Journal.

Dell went public 25 years ago but has seen its shares slump for several years. It has had several private equity approaches and last month was said to be in "serious" talks with Silver Lake and TPG Capital.


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