Dell seems to be a stone's throw away from going private. The buyout consortium consists of company founder Michael Dell, a private equity firm called Silver Lake Partners, and Microsoft Corp. The latter two will be minority investors with Michael Dell taking majority ownership. The deal is estimated to be in excess of $24 billion and could be finalized over the weekend.
The investment group will be helped out with up to $15 billion in financing from Barclays, Bank of America Merrill Lynch, Credit Suisse and RBC Capital.
Michael Dell's stake in the company is almost 16 percent, which will be used to help gain majority ownership. Should the deal go through it will be the largest leveraged buyout since Lehman Brothers filed for bankruptcy.
It seems radical changes and an intriguing future are on the cards for Dell, since the whole purpose of the buyout is to give the company a much needed makeover. It should be interesting considering all the work that has been done to buy out shareholders.
|Topics||Microsoft, Dell, Buyout, Michael Dell, Silver Lake Partners|