Dell buyout 'as soon as Monday': report

According to reports, the deal which would send Dell private could be finalized as soon as next week.


Dell's buyout, an agreement between founder Michael Dell and private equity firm Silver Lake Partners, could be concluded as soon as Monday.

According to Reuters, a deal could be announced formally next week. Citing two sources close to the matter, the publication says that the transaction -- which will take Dell private and away from public trading -- will be fine-tuned over the weekend.

However, no deal will be announced until all of the buyout's last-minute details are ironed out.

Yesterday, reports surfaced that Dell's founder and CEO Michael Dell would be investing between $500 million and $1 billion of his own funds to secure a large enough stake to "reposition" the firm amidst not only strong competition from rival firms -- including Lenovo -- but also in order to try and carve out a new market position in a world where the general trend is moving towards mobile devices such as smartphones and tablets.

Bloomberg estimates that Michael Dell's stake is currently worth roughly $3.45 billion. By offering extra funds in equity financing, the Dell founder would be putting up over 50 percent of the total buyout price.

Silver Lake Partners has managed to negotiate with Barclays, Bank of America Merrill Lynch, Credit Suisse and RBC Capital to raise up to $15 billion in debt financing. In addition, it is expected that the investment group -- as well as Microsoft -- may invest between $1 and $2 billion each in order to become minority shareholders.

Dell's move to go private could be worth between $22.6 billion and $24.4 billion, equating to between $13 and $14 per share.

JPMorgan Chase & Co is advising Dell on the move to go private, and reports suggest that Evercore Partners is working to make sure that shareholders in the computing firm are getting the best deal possible.

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