| By Maureen O'Gara | Article Rating: |
|
| January 22, 2013 08:15 AM EST | Reads: |
1,403 |
Dell’s board has reportedly hired Evercore Partners to make sure the deal led by Silver Lake Management to take the company private is the richest one available.
Bloomberg thinks the Silver Lake deal could be announced this week although Fox Business claims the talks have “seriously slowed” because of stockholder resistance to the “bargain” price. 
Reports say the offer calls for $13-$14 a share – or between $23 billion and $24 billion – and have Michael Dell rolling his 15+% stake into the buyout.
Evidently Dell expects shareholder lawsuits. Hence, giving the boutique investment bank a go-shop contract to prove it’s the best deal around. A sweetener may not make finance sense to Silver Lake and its friends.
Dell’s enterprise value is reckoned at $19.7 billion.
Michael Dell may also need the $14.2 billion fortune Dell’s got stashed oversees to take the company private Bloomberg says.
It hasn’t paid US taxes on the money and if repatriated it could cost the company 35% less any foreign taxes unless some sophisticated tax lawyers can find a loophole like a foreign merger.
US companies have at least $1.6 trillion in untaxed earnings overseas.
Dell lost almost a third of its value last year and is struggling with tablet makers such as Apple. Going private may give it room to overhaul its corporate structure and focus on data-center equipment instead of PCs.
The buyout, financed by $15 billion from the Royal Bank of Canada, Bank of America, Barclays and Credit Suisse, would be the biggest since the financial crisis.
Published January 22, 2013 Reads 1,403
Copyright © 2013 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.
More Stories By Maureen O'Gara
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara
- Cloud People: A Who's Who of Cloud Computing
- Cloud Expo New York: Cloud Is Changing the Economics of Business
- New Relic Q1 2013 Blazes Past Growth Targets and Reaches 40,000 Active Customer Accounts
- How Can Green Web Hosting Benefit Your Business?
- Big Data Isn’t About the Database, It’s About the Application
- Cloud Expo New York: Rethink IT and Reinvent Business with IBM SmartCloud
- Cloud Expo New York: API Security, Does My Business Need an OAuth Server?
- Cloud Expo New York: Developing the World’s First IaaS Marketplace
- Cloud Expo NY: Best Practices for Delivering Oracle Database as a Service
- UNIT4 Business Software: Three Retail Accounting Tips to Help Retailers Leverage the Cloud and Back Office Systems
- Cloud Expo New York: Aligning Your Cloud Security with the Business
- Cloud Expo NY: Best Practices for Architecting Your Cloud Infrastructure
- Cloud People: A Who's Who of Cloud Computing
- Cloud Expo New York: Cloud Is Changing the Economics of Business
- AMD and Adobe Collaborate on Upcoming Version of Adobe Premiere Pro Software to Enable Breakthrough Video Editing Performance Through Open Standards
- Enterasys Spotlights SDN's Impact on Traditional Networking in Upcoming Webinar
- New Relic Q1 2013 Blazes Past Growth Targets and Reaches 40,000 Active Customer Accounts
- State and Local Governments Adopt Microsoft Dynamics CRM to Improve Citizen Service Delivery
- How Can Green Web Hosting Benefit Your Business?
- Cloud Expo New York: Deploying Hybrid Cloud for Performance and Uptime
- Big Data Isn’t About the Database, It’s About the Application
- Cloud Expo New York: Delivering Digital Marketing on the Cloud
- Cloud Expo New York: Rethink IT and Reinvent Business with IBM SmartCloud
- Gravitant Supports General Dynamics Information Technology in Offering New Cloud Brokerage Services to Government Entities
- The Top 150 Players in Cloud Computing
- Six Benefits of Cloud Computing
- Where Are RIA Technologies Headed in 2008?
- FullArmor GPAnywhere Secures Microsoft Application Virtualization Applications Through Group Policy
- SYS-CON's Virtualization Conference & Expo: Themes & Topics
- SYS-CON's Virtualization Journal Opens Its "Readers' Choice Awards" Nominations
- "Virtualization Is Now a Key Strategic Theme," Says Citrix CTO
- Application Virtualization: Instant Migration to Vista, Fast Delivery, Secure Access, Side-by-Side Deployments
- Application Virtualization
- Integration with Windows Vista, Microsoft Excel, and Microsoft Application Virtualization
- The Top 250 Players in the Cloud Computing Ecosystem
- What's the Difference Between Cloud Computing and SaaS?























