Dell's (DELL) Aim to Go Private May Be Hindered by Michael Dell
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Price: $427.78 +2.17%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.6%
EPS Growth %: +106.0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.6%
EPS Growth %: +106.0%
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Michael Dell might be the biggest hang-up on going private that Dell (Nasdaq: DELL) has right now.
Reports out Wednesday have private equity firm TPG Capital walking away from a potential deal with the former PC giant. That would leave Silver Lake, which was said to get about $7 billion in financing, as the sole go-alone on a deal. Silver Lake might have to work in a deal with Mr. Dell as well as a sovereign wealth fund or large pension.
Mr. Dell owns about 16 percent of the company, with some expecting he might sell a little to get a deal done. Still, if Dell wants to retain control of the company, what's the point of taking it private? Mr. Dell has run the company since 2007, even quipping that the company should go private in 2010, but there hasn't been solid groundwork laid to promote the idea of Mr. Dell continuing to run the company.
Shares are down 4.3 percent Wednesday.
Reports out Wednesday have private equity firm TPG Capital walking away from a potential deal with the former PC giant. That would leave Silver Lake, which was said to get about $7 billion in financing, as the sole go-alone on a deal. Silver Lake might have to work in a deal with Mr. Dell as well as a sovereign wealth fund or large pension.
Mr. Dell owns about 16 percent of the company, with some expecting he might sell a little to get a deal done. Still, if Dell wants to retain control of the company, what's the point of taking it private? Mr. Dell has run the company since 2007, even quipping that the company should go private in 2010, but there hasn't been solid groundwork laid to promote the idea of Mr. Dell continuing to run the company.
Shares are down 4.3 percent Wednesday.
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