The Blackstone Group is contemplating to bid for Dell Inc in an amount over and above the proposed US$24.4 billion offer by its founder Michael Dell and partner equity firm Silver Lake Management LLC. This moves was confirmed by individuals that spoke on the condition of anonymity.
Blackstone is lining up other investors but a final decision has not been reached yet. Blackstone has until March 22 to make an offer as this is the window provided under the Dell by laws 'go-shop' provision. This provision allows the board to receive and review proposals and can negotiate with bidders beyond the date when the offer is deemed acceptable.
Should the Silver Lake offer be accepted, it would be the largest leveraged buyout completed since the 2008 financial crisis. A Blackstone bid though would pressure the firm and Dell to increase the US$13.65 per share offer especially after there is growing criticism on the pricing from shareholders and equity owners alike.
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