Feeds

Blackstone gives up on $25bn bid to snatch Dell from Mr Dell

You know what? Knock yourself out, Michael

Boost IT visibility and business value

Private-equity fund Blackstone has reportedly given up its efforts to splurge $25bn on whipping Dell out from under Michael Dell's nose.

Blackstone, which is a Dell shareholder, and activist investor Carl Icahn had hoped to together make a rival bid for the Texan computer giant, but are now unconvinced that it is worth more than its current market valuation, people familiar with the details muttered to the Financial Times.

Dell's share price of $13.95 currently values the company at $24.4bn. Company founder Michael Dell and his pals at Silver Lake Partners together want to take the firm private at $13.65 per share.

Blackstone had said it was interested in topping Dell's price in a joint offer with Insight Venture Partners and Francisco Partners, and was also rumoured to be in talks with tech companies to join its bid.

But the sources said that Blackstone's management are concerned about the fund's ability to disentangle itself from Dell in a profitable way when the time comes to find the computer maker a new owner.

Dell's special committee has claimed to be so confident that the Mike D deal is the best, it would reimburse Blackstone and the other competing group led by Icahn Enterprises for their work in considering their bids, up to $25m.

Shareholders have not been as uniformly delighted by the prospect of the deal, with some like Icahn and Southeastern Asset Management arguing that Mike D's offer doesn't give enough to stockholders.

Carl Icahn has made the highest value bid, offering to buy 58 per cent of Dell for $15 a share. He's also refused the commitee's offer of reimbursement if he dropped the option of a proxy battle - rallying shareholders to vote against the Mike D deal - saying he still wanted to be able to do that. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
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.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.