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Schwarzenblitz

Schwarzenblitz
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  • Previously seen as hostile to the Blackstone bid for Dell (DELL), Michael Dell will reportedly consider joining if the P-E firm guarantees he will stay on as CEO. Dell - of course - has some leverage, as he could cash in his $4.5B in stock and walk away, leaving any buyer with a large financing hole. [View news story]
    But this still doesn't answer some questions

    1) This would belie M Dell's whole idea of taking the company private...afterall, that was the original intention

    2) BX wants to sell parts of DELL for this transaction which again would belie M Dell's intention to take control of the comany and turn it around. With BX, he would losing a couple of components in his company
    Apr 1 11:53 AM | Likes Like |Link to Comment
  • 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. [View news story]
    any thoughts Chris ? I have May'13 $15 call options ...any idea when I should call it quits ?
    Mar 29 03:03 PM | Likes Like |Link to Comment
  • 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. [View news story]
    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
    Mar 29 03:01 PM | Likes Like |Link to Comment
  • Dell - Shareholders Are The Winners If 3 Fight For 1 [View article]
    Actually, Ankit I thought his whole purpose was to take the company private so that he needn't answer to shareholders.....the idea of the public stub belies that whole idea. Why did he go through all this trouble in the first place ?
    This was my hypothesis

    1) BX/Icahn wants to sell a part of M Dell's baby to finance the transaction and for a paltry increase of 60 cents per share
    2) BX/Icahn wants to keep a part of the company public which totally belies M Dell's original purpose anyway

    The only sensible thing Dell can do is to meet up with Silverlake, SE, T Rowe etc and fork out a deal of $17 - $18 to take it completely private. Microsoft has deep pockets and has an interest in doing this deal. SE has an average of 16.88 on their shares....come on, they need to atleast breakeven here. Similarly, $17 is a price which can make Icahn go away. This is the only way I see everyone getting what they want
    Mar 28 12:16 PM | 2 Likes Like |Link to Comment
  • Dell: The Barbarians Finally Arrive At The Gate [View article]
    I have absolutely no idea why M Dell would want to hobnob with Blackstone at all...

    1) BX wants to sell a part of M Dell's baby to finance the transaction and for a paltry increase of 60 cents per share
    2) BX wants to keep a part of the company public which totally belies M Dell's original purpose anyway

    The only sensible thing Dell can do is to meet up with Silverlake, SE, T Rowe etc and fork out a deal of $17 - $18 to take it completely private. Microsoft has deep pockets and has an interest in doing this deal. SE has an average of 16.88 on their shares....come on, they need to atleast breakeven here. Similarly, $17 is a price which can make Icahn go away. This is the only way I see everyone gets what they want

    Mar 25 04:34 PM | Likes Like |Link to Comment
  • A bidding war for Dell (DELL) appears to be breaking out. Bloomberg reports Blackstone has "submitted a tentative offer" for Dell, while the WSJ reports Blackstone and Carl Icahn have separately notified the special committee they're "working on firm bids." Each has 4 days to present an offer now that Dell's go-shop period has ended. Blackstone is said to have outlined a price range of $13.65-$15/share, and is thinking of selling Dell's financial services arm to help finance its bid. (previous[View news story]
    I would be really happy with 17-18 too....hope it ends up there (or more than that :) )
    Mar 25 01:35 PM | Likes Like |Link to Comment
  • Dude, You're Not Getting DELL...Or AUTO [View article]
    Chris, what do you think is a reasonable bid to expect ? DELL is already at 14.50 as we speak...do you think it is not too optimistic to expect 18 ?
    I would be opening champagne at $20 :)

    -TJ
    Mar 18 11:03 PM | 1 Like Like |Link to Comment
  • Dell: Take The Premium And Run [View article]
    PackRat, how do you know it is close to 18 ? Trusted sources ?

    I would be happy with $18 :)

    -TJ
    Mar 18 10:48 PM | 1 Like Like |Link to Comment
  • Dell: Take The Premium And Run [View article]
    "You really think Icahn cares whether the company is around in 3 years? Dell doesn't have a clearly defined product strategy to be so aggressive with debt. "

    I think you yourself have given the answer right here...Icahn doesn't really care what happens to DELL. If he doesn't see an increased bid, he is gonna go the way of the special dividend. You have to give him some incentive to make him go away. Either way, the longs will probably win
    Mar 18 08:24 PM | 1 Like Like |Link to Comment
  • Dell: Take The Premium And Run [View article]
    @Author
    Well, beg to disagree on that one for a multidude of reasons

    1) Even if you completely write off the income from Dell's PC section which is about 40-50% of its income and try to do a DCF assuming it grows anywhere between 5-8% after that, it seems that it is worth more than 13.65$

    2) HUGE amount of open interest in calls (of all expiries) vs the puts

    3) Carl Icahn knows more than you and me and he has bought a boatload of shares. If anything, he will reject M Dell's bid and if he has no other choice, will issue a special dividend and dismantle the company. There is no way he is letting this dip below 13.65 let alone 9/10

    In any case, I think the reward far outwieghs the risk...too many big players are involved who would like to see a raised bid. Let's also not forget SouthEastern.
    Mar 18 02:25 PM | 1 Like Like |Link to Comment
  • Michael Dell's Buyout Drama 2: Icon Vs. Icahn [View article]
    Hey Dan,

    Is the March 22 deadline a firm one for submitting any bids, or are bids possible after that as well ?
    Mar 16 01:40 PM | Likes Like |Link to Comment
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