Michael Dell reportedly met with Blackstone (BX) this week about the private-equity firm's offer...


Michael Dell reportedly met with Blackstone (BX) this week about the private-equity firm's offer for Dell (DELL), although there's no word on how the talks went. In a letter, Blackstone said it would "expect and encourage" Michael Dell to join the deal. Meanwhile, a special Dell board committee is today expected to paint a dire picture of the company in a proxy statement as it explains why the Silver Lake / Michael Dell bid is the best offer.

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Comments (8)
  • Chris DeMuth Jr.
    , contributor
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    This long weekend could be a good time for developments. BX and DELL both appear to be handling this well.
    29 Mar 2013, 08:55 AM Reply Like
  • Placebo Investment Advice
    , contributor
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    Chris: Even though cooperation between BX and Michael might increase the odds of a deal, don't you think that it also works against a robust bid price? The cooperating parties are both interested in the lowest acquisition price; other shareholders have the opposite desire. (Not that they will get this type of arrangement will get by Icahn, unless he gets his due.)
    29 Mar 2013, 02:38 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
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    Yes. Good for a deal. Bad for highest price.
    29 Mar 2013, 02:46 PM Reply Like
  • Placebo Investment Advice
    , contributor
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    I view the PC component of Dell as undervalued, just as the magnetic disk drive companies (STX & WDC) were undervalued in the mid-2000s when Seagate bought Maxtor and few investors wanted anything to do with that industry. The performance of Seagate and WDC has beaten the S&P500 handily since then. I see the threat of tablets to workhorse PCs as analogous to the threat of solid state drives to magnetic disk drives. People overestimate the demise of the PC, just as they overestimated the demise of magnetic disk drives.

     

    If I'm able to stay in Dell stock in a future deal, I'm staying with it. $14-15 is too cheap, as Michael, BX, and Icahn all know.
    29 Mar 2013, 03:04 PM Reply Like
  • Schwarzenblitz
    , contributor
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    Not only that ...
    BX wants to
    1) Sell a portion of DELL
    2) Keep a portion of DELL public
    3) Might not even be in favor of retaining him as CEO

     

    Why M Dell would cooperate with BX is beyond me....at this point, the only logical conclusion I see is for Microsoft/Silverlake to step in and up their bids to $16.5 - $17 to put it beyond BX and Icahn. But you never know...the market doesn't seem to a rational place anymore
    29 Mar 2013, 03:01 PM Reply Like
  • Schwarzenblitz
    , contributor
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    any thoughts Chris ? I have May'13 $15 call options ...any idea when I should call it quits ?
    29 Mar 2013, 03:03 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
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    Good question; I'm just not that smart on options, certainly not buying options. Will it work and work right away and am I certain enough relative to the price of the options? I don't know but it is a lot of pressure to have them so time-sensitive.
    29 Mar 2013, 03:44 PM Reply Like
  • Placebo Investment Advice
    , contributor
    Comments (3967) | Send Message
     
    The Dell board is now talking gloom and doom for the company as it defends its acceptance of a low buyout price (Surprise!) Perhaps the board and CEO need to find new careers. A prominent peer is not complaining about the PC industry:

     

    --Excerpt from Lenovo Press Release--

     

    HONG KONG, January 30, 2013 – Lenovo Group today reported results for its third fiscal quarter ended December 31, 2012. In its best quarter ever, Lenovo continued to outgrow the market in all geographies with record sales, pre-tax income and earnings. Lenovo continued its push towards becoming the world’s leading PC maker and emerging global leader in PC Plus devices, with another quarterly sales record of $9.4 billion, an 12 percent year-over-year increase.
    29 Mar 2013, 06:02 PM Reply Like
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