Michael Dell’s Role in Dell Buyout Questioned

Investing

Published: January 17, 2013 7:00 am

Last Updated: December 30, 2013 11:35 am

Private equity firm Silver Lake Partner’s rush to fund a buyout of Dell Inc. (NASDAQ: DELL) has accelerated. And investors have begun to ask if founder Michael Dell has a conflict of interest between his role as CEO of a public company and his role as a possible buyer of that company.

Bloomberg reports:

Silver Lake Management LLC and partners are close to lining up about $15 billion in funds for a buyout of Dell Inc. (DELL), the third-biggest maker of personal computers, said people familiar with the matter.

Lenders including Credit Suisse Group AG, Royal Bank of Canada, Barclays Plc (BARC) and Bank of America Corp. may informally disclose terms to a small group of possible buyers of the bridge loan as soon as today, said one of the people, who asked not to be named as the process is private.

The Wall Street Journal writes:

As founder, CEO, 15.7% owner and company namesake, Dell the man has outsize influence on Dell the company.

Reports say Mr. Dell is playing a role in the transaction and contributing his stake to the deal, and two people familiar with the matter say Mr. Dell initiated the idea. The involvement will eventually get shareholders wondering where his allegiances lie. Is he a buyer, a seller, or somewhere in between?

It’s Your Money, Your Future—Own It (sponsor)

Are you ahead, or behind on retirement? For families with more than $500,000 saved for retirement, finding a financial advisor who puts your interest first can be the difference, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors who serve your area in minutes. Each advisor has been carefully vetted and must act in your best interests. Start your search now.

If you’ve saved and built a substantial nest egg for you and your family, don’t delay; get started right here and help your retirement dreams become a retirement reality.