Dell's (DELL +13%) offshore cash could present one more challenge to an LBO deal, notes Rolfe...

|About: Dell Inc. (DELL)|By:, SA News Editor

Dell's (DELL +13%) offshore cash could present one more challenge to an LBO deal, notes Rolfe Winkler: Dell says "substantially all" of its $14.2B cash/investment balance (offset by $9B in debt) is held outside the U.S. Goldman recently estimated a Dell LBO deal would have an IRR of just 8% due to this issue, at least unless the cash can be repatriated tax-free. Also: a post-LBO Dell would be loaded with debt and thus have trouble continuing the acquisition spree the company considers pivotal to its efforts to remake itself. Shares +2.6% AH. (previous: I, II)