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Microsoft (MSFT -0.5%) - yes, Microsoft - is in now a participant in Dell (DELL +2.7%) LBO...

Microsoft (MSFT -0.5%) - yes, Microsoft - is in now a participant in Dell (DELL +2.7%) LBO talks, David Faber reports. Faber's sources claim Microsoft could provide $1B-$3B in mezzanine financing for its third-biggest PC OEM client to help facilitate a deal. No word on whether Microsoft is also looking to further its hardware ambitions along the way. (more on Dell)
Comments (10)
  • SA Editor Samir Patel
    , contributor
    Comments (163) | Send Message
     
    this gets better and better. removing myself from a moment from my perspective as a shareholder, it's really been pretty amusing to watch this all develop.
    22 Jan 2013, 11:40 AM Reply Like
  • paul j schupf
    , contributor
    Comments (79) | Send Message
     
    Faber said last week that there was no way that the deal could be done.
    22 Jan 2013, 11:50 AM Reply Like
  • KevinRemde
    , contributor
    Comments (362) | Send Message
     
    Well... That's one way to get Dell to stop selling VMware and Linux
    ... :)
    22 Jan 2013, 12:13 PM Reply Like
  • User 509088
    , contributor
    Comments (935) | Send Message
     
    so the towel company that is distributed when you buy a box of soap is buying the soap company to protect the distribution value of the towels?
    22 Jan 2013, 01:19 PM Reply Like
  • XRTrader
    , contributor
    Comments (609) | Send Message
     
    Would be interesting to see MSFT take a substantial ownership stake in a privatized DELL - @ 3 billion, it would get near 10-15% of the company (depending, obviously if they provided debt financing or actually wanted ownership).

     

    DELL is an interesting, and certainly undervalued asset - and this could prove to be a nice allocation of capital for MSFT (both strategically and for return on capital since they have so much cash sitting around).
    22 Jan 2013, 01:52 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Until MSFT denies it is involved...MSFT should release this news, not the financial media, as ingratiating rumors. Yes, this has been one rumor churned junket.
    22 Jan 2013, 01:56 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8157) | Send Message
     
    Would like to see a battle that pushes DELL up past $22 per share.
    22 Jan 2013, 01:57 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3604) | Send Message
     
    Any $DELL takeover at less than $16 is a disservice to shareholders.
    22 Jan 2013, 04:43 PM Reply Like
  • Leo50
    , contributor
    Comments (120) | Send Message
     
    Yup, get the buyout price higher.
    22 Jan 2013, 04:52 PM Reply Like
  • freed0m
    , contributor
    Comments (530) | Send Message
     
    I hope MSFT does not spend money on this. it's total waste of money and gives wrong signal to the rest of PC manufacturers.
    23 Jan 2013, 07:58 AM Reply Like
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