Feeds

VC firm asked Mark Hurd if he wants to run Dell - report

Hasn't even made a bid for Michael's shop yet

Securing Web Applications Made Simple and Scalable

Former disgraced HP chief Mark Hurd is the man VC Blackstone would plonk at the top of Dell should it scupper a bid by Michael Dell and chums to take the enterprise tech firm private again.

This is according to a report by Bloomberg, which states Blackstone is considering matching the $24.4bn offered by Dell the man and his private equity partner Silver Lake Management LLC.

Quoting loquacious sources close to the matter, Hurd has not yet been formally approached - indeed no rival bid has even been lodged.

But should he get the call, Hurd has intimate knowledge of Dell. After all, he competed with the computer-maker aggressively during his time at HP when he retook the PC crown and acquired EDS and 3Com.

Hurd also slashed R&D, taking the shine off HP's innovative side, and left the business under a cloud in 2010, resigning after a personal relationship with former contractor and soft porn model Jodie Fisher was found to be in violation of HP's standards of business conduct.

As one door slammed, another opened, with perma-tanned playboy Larry Ellison waiting with open arms to welcome him on board.

Creaking computer-maker Dell opened up on plans to go private last month. In the subsequent weeks, Southeastern Asset Management, the second-largest Dell shareholder (8.4 per cent stake) behind Michael, branded the $24.4bn bid as "woefully inadequate".

Third-largest shareholder T Rowe Price (4.4 per cent stake) agreed the buy-out did not reflect the full value of Dell, saying, "We do not intend to support the offer as put forward".

It also emerged that activist investor Carl Icahn, who bought up Dell shares during February, also opposed the bid, though he has since agreed to keep talks with Dell confidential.

And yet another investor, Longleaf Partner Fund, voiced "deep disappointment" with Dell's board and its "failure to implement a transaction that would maximise shareholder value".

Dell bit back, saying it had measured alternatives to the leveraged buy-out but Michael and Silver Lake's offer was the best option.

HP and Lenovo were rumoured to have taken a look under the hood but took it no further.

Interestingly, Blackstone lured former M&A chief David Johnson from Dell in January and he is currently senior MD in the private equity group.

The so-called "go shop" period under which the company can solicit offers from parties ends tomorrow. ®

Build a business case: developing custom apps

More from The Register

next story
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
Price cuts, new features coming for Office 365 small biz customers
New plans for companies with up to 300 staff to launch in fall
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.