Thursday, April 18, 2013

Reuters: Technology News: Blackstone ends pursuit of Dell Inc: sources

Posted by Isabella on 8:00 PM

Reuters: Technology News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Blackstone ends pursuit of Dell Inc: sources
Apr 19th 2013, 02:41

  • Tweet
  • Share this
  • Email
  • Print
A Dell laptop computer is pictured in New York in this August 26, 2008 file photograph. REUTERS/Brendan McDermid/Files

A Dell laptop computer is pictured in New York in this August 26, 2008 file photograph.

Credit: Reuters/Brendan McDermid/Files

Thu Apr 18, 2013 10:41pm EDT

(Reuters) - Blackstone Group LP has ended its pursuit of Dell Inc, two sources familiar with the matter told Reuters, paving the way for private equity house Silver Lake and company founder Michael Dell to buy out the world's No. 3 PC maker.

Blackstone pulled out just a month after it first launched a challenge to the billionaire's attempt to buy and take private the PC maker he founded, while it struggles in the face of a fast-contracting personal computer market.

It was not clear why Blackstone, which has been negotiating with potential partners to make a play for the PC maker, decided to pull out. Billionaire Carl Icahn has also taken a significant stake in the company and opposes Michael Dell's effort.

Activist investor Icahn and Blackstone have each offered alternatives that would keep part of the company public, although they have also held preliminary talks about working together.

Icahn has proposed paying $15 per share for 58 percent of Dell, while Blackstone has indicated it could pay more than $14.25 per share. Both deals involve saddling the company with a good deal of debt and keeping it on public markets. Silver Lake's $13.65 per share all-cash offer would see Dell go private.

Blackstone and Silver Lake declined to comment. Dell could not be reached immediately for comment outside of regular U.S. business hours.

Dell was regarded as a model of innovation as recently as the early 2000s but has struggled to make up for a declining share of the global PC market. The company is now trying to transform itself into a provider of enterprise computing services, reducing its reliance on PC sales.

(Reporting by Greg Roumeliotis in NEW YORK; Additional reporting by Sakthi Prasad in BANGALORE; Editing by Paul Tait and Edmund Klamann)

  • Tweet this
  • Link this
  • Share this
  • Digg this
  • Email
  • Reprints
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

Comments (0)

Be the first to comment on reuters.com.

Add yours using the box above.
You are receiving this email because you subscribed to this feed at blogtrottr.com.

If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

 
Great HTML Templates from easytemplates.com.