Consumer Electronics

Dell Buyout Could Happen Soon

The private equity buyout of Dell Inc. (NASDAQ: DELL), about which investors were skeptical just two days ago, could happen soon. Rumors in the press suggest that the primary PE firm in the deal will be Silver Lake Partners and that several banks are prepared to make the loans necessary to close the transaction.

The greatest hurdle at this point could be investor lawsuits. The buyout offer is expected to be between $12 and $13 a share. Dell’s prospects may have dimmed in the past two years, but investors could insist that the firm is worth more than the $18 at which it traded in the past year.

According to Reuters:

Buyout firm Silver Lake Partners, which is leading the deal, tapped Credit Suisse, Bank of America Merrill Lynch, Barclays and RBC late last year to finance a potential deal, the sources said on condition of anonymity, because details have not been made public. JPMorgan is advising Dell on a potential buyout of the $19 billion company, which would be one of the largest deals since the global recession. It will also allow Dell, which has been trying to become a one-stop shop for corporate technology needs as the PC market shrinks, to conduct that difficult makeover away from public scrutiny.

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