Stephen Percoco, CFA
Value, special situations, bonds, newsletter provider

A Closer Look At The Dell LBO

On Tuesday, February 5, Dell Inc. (NASDAQ:DELL) announced that it had entered into an agreement to be acquired by its founder and CEO, Michael Dell, and private equity firm Silver Lake Partners. The buyout price of $13.65 per share represents a 25% premium to the January 11 pre-rumor price of $11.83 and a 36% premium to the average trading price of the stock over the 90-days prior to the LBO announcement. Details of the specific terms of the buyout are still incomplete, but Dell filed an 8-K on February 6 that provides some additional information. From that document, we will attempt to fill in some of the gaps to provide a more complete picture of the LBO.


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