| By Maureen O'Gara | Article Rating: |
|
| January 22, 2013 08:15 AM EST | Reads: |
1,310 |
Dell’s board has reportedly hired Evercore Partners to make sure the deal led by Silver Lake Management to take the company private is the richest one available.
Bloomberg thinks the Silver Lake deal could be announced this week although Fox Business claims the talks have “seriously slowed” because of stockholder resistance to the “bargain” price. 
Reports say the offer calls for $13-$14 a share – or between $23 billion and $24 billion – and have Michael Dell rolling his 15+% stake into the buyout.
Evidently Dell expects shareholder lawsuits. Hence, giving the boutique investment bank a go-shop contract to prove it’s the best deal around. A sweetener may not make finance sense to Silver Lake and its friends.
Dell’s enterprise value is reckoned at $19.7 billion.
Michael Dell may also need the $14.2 billion fortune Dell’s got stashed oversees to take the company private Bloomberg says.
It hasn’t paid US taxes on the money and if repatriated it could cost the company 35% less any foreign taxes unless some sophisticated tax lawyers can find a loophole like a foreign merger.
US companies have at least $1.6 trillion in untaxed earnings overseas.
Dell lost almost a third of its value last year and is struggling with tablet makers such as Apple. Going private may give it room to overhaul its corporate structure and focus on data-center equipment instead of PCs.
The buyout, financed by $15 billion from the Royal Bank of Canada, Bank of America, Barclays and Credit Suisse, would be the biggest since the financial crisis.
Published January 22, 2013 Reads 1,310
Copyright © 2013 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.
More Stories By Maureen O'Gara
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara
- Cloud People: A Who's Who of Cloud Computing
- Cloud Expo New York Speaker Profile: Dave Linthicum – Cloud Technology Partners
- Cloud Expo New York: Cloud Is Changing the Economics of Business
- Best CIO Practices Shared from SHI’s Customers
- Cloud Expo New York: Deploying Hybrid Cloud for Performance and Uptime
- Cloud Expo New York: Delivering Digital Marketing on the Cloud
- Big Data Isn’t About the Database, It’s About the Application
- Cloud Expo New York: Rethink IT and Reinvent Business with IBM SmartCloud
- Cloudant to Exhibit at Cloud Expo & Big Data Expo New York
- BEA Updates WebLogic SOA Portal for Web 2.0 Era
- How to Move Your Oracle Databases to Amazon EC2 Cloud
- The Accessibility of the Cloud
- Cloud People: A Who's Who of Cloud Computing
- Cloud Expo New York: Best CIO Practices Shared from SHI’s Customers
- Cloud Expo New York Speaker Profile: Dave Linthicum – Cloud Technology Partners
- Cloud Expo New York: Cloud Is Changing the Economics of Business
- Cloud Expo New York: How to Use Google Apps Script
- Cloud Computing Bootcamp at Cloud Expo New York
- Rackspace Hosting Named “Platinum Plus Sponsor” of Cloud Expo New York
- Best CIO Practices Shared from SHI’s Customers
- Cloud Expo New York: Why Big Data Is Really About Small Data
- Cloud Expo New York: Deploying Hybrid Cloud for Performance and Uptime
- Cloud Expo New York: Delivering Digital Marketing on the Cloud
- Small Cancers, Big Data, and a Life Examined
- The i-Technology Right Stuff
- The Top 150 Players in Cloud Computing
- Who Are The All-Time Heroes of i-Technology?
- Where Are RIA Technologies Headed in 2008?
- Get the Message
- i-Technology Viewpoint: Is Web 2.0 the Global SOA?
- ESB Myth Busters: 10 Enterprise Service Bus Myths Debunked
- i-Technology Viewpoint: Thinking Outside the VC Box
- i-Technology Viewpoint: When to Leave Your First IT Job
- SOA Web Services Edge Conference Coverage on SYS-CON.TV
- SYS-CON.TV's "SOA Web Services" and "Enterprise Open Source" Programs To Air in December
- Five Reasons Why Web 2.0 Matters
























