Monday, March 25, 2013

Michael Dell May Lose Control Of PC Maker After Two Competing Buyout Bids Emerge

Media_httptctechcrunc_dvdxu

Dell’s board is looking at two surprise takeover bids from Blackstone Group and billionaire activist investor Carl Icahn, reports Reuters citing sources close to the discussion. A special committee is deciding whether either proposal would trump an existing $24.4 billion buyout offer from the PC maker’s founder Michael Dell and private equity firm Silver Lake.

The new bids mean that Michael Dell could potentially lose control of the company he founded in 1984 and that he and Silver Lake will most likely need to reconsider their original proposal to make it more attractive to Dell shareholders, some of whom have complained that its terms undervalue the PC maker.

Icahn and Blackstone put in their bids on March 22, the last day of the “go-shop” period to solicit competing offers for Dell. The company could potentially announce as soon as Monday whether or not they will be interested in either of the new proposals.

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