Blackstone, Icahn Bid For Dell

Mar 25 2013 | 1:33pm ET

The Blackstone Group and Carl Icahn have turned Dell Inc.'s leveraged buyout into a bidding war with Dell founder Michael Dell and private equity firm Silver Lake Partners.

Both Blackstone and Icahn made offers to the company at the end of its "go-shop" period Friday and will continue talks with both sides to see if an offer superior to the $24.4 billion going-private deal Dell struck with Michael Dell and Silver Lake last month can be reached.

Blackstone Management Associates is offering $14.25 per share for Dell, $0.60 more per share that the Silver Lake bid, which also includes Microsoft and Michael Dell's hedge fund, MSD Capital. Icahn, who owns 4.6% of Dell, has offered a $5 billion equity commitment, in which existing Dell shareholders could receive new shares or $15 apiece for their existing shares, up to $2 billion. Both bids would leave a part of Dell public, as opposed to the Silver Lake plan.

Icahn is offering $15 per share for about 58% of Dell, with himself controlling only about 24.1% of the company, and other investors, including Southeastern Asset Management and T. Rowe Price, controlling the rest of the majority stake. Icahn also said he's held preliminary talks with Blackstone and would review Blackstone's bid, which is set to expire on Thursday. Blackstone is working with buyout firm Francisco Partners.

"We are gratified by the success of our go-shop process that has yielded two alternative proposals with the potential to create additional value for Dell shareholders," Alex Mandl, head of the special committee handling the company's sale, said. "We intend to work diligently with all three potential acquirers to ensure the best possible outcome for Dell shareholders, whichever transaction that may be."

Michael Dell and Silver Lake can only make one more bid for the company, and would be entitled to a breakup fee of only $180 million—half the average for a deal of this size—should Dell pick another buyer.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR