A contingent from the Blackstone Group would be visiting Dell's corporate headquarters on Monday to conduct a proper due diligence on the company according to anonymous sources. This is a clear sign that the firm would be proceeding with the offer that can topple the bid offer by Michael Dell's US$24.4 billion buyout bid.
The offer by Blackstone is one of two being considered by the Dell board, the other being Carl Icahn's offer. Either one or both can be a superior offer compared to the current tabled leveraged buyout offer.
According to anonymous sources, Blackstone is working with Michael Dell to determine the future of the company with Dell remaining as CEO. Should Dell accept the Blackstone offer, then he would remain as CEO of the firm. Should Dell decline, a secondary plan is being formulated without Dell at the helm.
The private equity firm have contacted, through their executive search firm, possible Dell replacements in Michael Capellas of Cisco Systems, Michael Daniels formerly of IBM, Mark Hurd of Oracle and Todd Bradley of Hewlett-Packard.
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