Dell (DELL) Bid Could Rise to $15/Share - Jefferies
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Price: $434.97 -3.39%
Rating Summary:
24 Buy, 21 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 14 | Down: 11 | New: 17
Rating Summary:
24 Buy, 21 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 17
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Analysts at Jefferies weighed in on the Dell (NASDAQ: DELL) takeover fight following recent moves by activist investors to push for a higher bid. They see a chance for the bid to be raised to $15 per share, from the current $13.65 per share pending deal.
"Revising our LBO analysis to account for the details found in the M&A agreement, we believe that the bid could be raised to $15 to satisfy agitated shareholders," analyst Peter Misek said. "While many shareholders would obviously like a higher bid, we see competing offers as unlikely. We estimate $15 would yield a 20%-23% IRR and believe private equity would be unlikely to accept a lower rate."
Over the past few days shareholders, including Southeastern Asset Management, have come out in opposition of the deal saying it significantly undervalues the company. Southeastern believes the company is worth $24 per share.
Despite the possible upside, Misek stopped short of upgrading the shares. He maintained his Hold rating price and bumped his price target from $13 to $13.65.
For an analyst ratings summary and ratings history on Dell click here. For more ratings news on Dell click here.
Shares of Dell closed at $13.70 yesterday.
"Revising our LBO analysis to account for the details found in the M&A agreement, we believe that the bid could be raised to $15 to satisfy agitated shareholders," analyst Peter Misek said. "While many shareholders would obviously like a higher bid, we see competing offers as unlikely. We estimate $15 would yield a 20%-23% IRR and believe private equity would be unlikely to accept a lower rate."
Over the past few days shareholders, including Southeastern Asset Management, have come out in opposition of the deal saying it significantly undervalues the company. Southeastern believes the company is worth $24 per share.
Despite the possible upside, Misek stopped short of upgrading the shares. He maintained his Hold rating price and bumped his price target from $13 to $13.65.
For an analyst ratings summary and ratings history on Dell click here. For more ratings news on Dell click here.
Shares of Dell closed at $13.70 yesterday.
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