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More on Dell's LBO: Microsoft (MSFT) will provide a $2B loan rather than an equity investment,...

More on Dell's LBO: Microsoft (MSFT) will provide a $2B loan rather than an equity investment, as had been reported. Michael Dell will remain chairman/CEO. The deal is expected to close before the end of the July quarter. Dell will have a 45-day "go-shop" period to solicit alternate bids; a $180M termination fee applies. Look for disgruntled shareholders to challenge the deal, particularly given Michael Dell's conflict of interest. But finding a higher bid could be easier said than done. DELL halted. (PR)
Comments (5)
  • whaddyamean?
    , contributor
    Comments (514) | Send Message
     
    If you don't count the stock I once held in Enron, I would say that DELL is the worst investment I ever made. I just can't wait until shareholders are asked to vote on this pathetic $13.65 buyout deal.

     

    If you'll excuse the mixed metaphors, this is just another example of fat cats shaking hands under the table with shareholders left holding the bag.
    5 Feb 2013, 09:53 AM Reply Like
  • shohen
    , contributor
    Comments (6) | Send Message
     
    Gee Michael, I was hoping for maybe dinner and a movie too!
    5 Feb 2013, 09:54 AM Reply Like
  • raokodali
    , contributor
    Comments (2) | Send Message
     
    Dell buy out share price of $13.65 is kicking out the shareholders who are with the company.Option holders above this strike price(Call)will go bankrupt.SEC should come out with a law to stop option trade of the company put up for sale,atleast 100 days in advance.This will prevent speculation.On the whole the price offered to share holders is peanuts.
    5 Feb 2013, 03:58 PM Reply Like
  • Martin Opsahl
    , contributor
    Comments (3) | Send Message
     
    I'm glad I sold all my stock at $30... never saw the value in reinvesting once it started to tumble. I never guessed that Dell would try to take the company private again though. Makes sense to me... I would do the same if it were my company and I had the leverage and resources to make it happen.
    5 Feb 2013, 04:06 PM Reply Like
  • WhartonMBAAlum
    , contributor
    Comments (29) | Send Message
     
    The Top 10 Largest Private Equity Deals of 2012 do confirm that the multi-billion dollar LBO - and the usage of significant leverage - are definitely back. For now:
    http://bit.ly/WlGvOb

     

    But none of the Top 10 largest deals last year even came close to $20 Billion-plus deal size. That sized private equity deal like the Dell LBO will almost certainly continue to be a rarity for the foreseeable future.
    6 Feb 2013, 01:55 AM Reply Like
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