Two New York investment groups have submitted bids for Dell Inc. The offers from Blackstone Group and Carl Icahn could be higher than the current bid for the company.
Dell’s board of directors disclosed the bids and said it will study both proposals and negotiate with both potential buyers. Blackstone Group, a New York-based private equity firm, submitted a bid of $14.25 a share while Icahn Enterprises, headed by high-profile investor Carl Icahn, submitted a bid for $15 a share.
Company founder and CEO Michael Dell in partnership with Silver Lake Partners filed a bid Dell approved conditionally on February 5. That bid was for $13.65 a share and was valued at $24.4 billion.
Since both deals could be superior to the original buyout proposal, the special committee made up of Dell’s independent board members said it will negotiate with both parties. Michael Dell has indicating he is willing to work with third-parties on acquisition proposals.
The new bids came at the end of the 45-day “go-shop” period that expired Saturday morning. The competing bids will please some shareholders, some of whom said they thought Dell’s original undervalued the computer maker.
Michael Dell sought to take the company private in order to speed its transformation into a more broadly based IT company that is less dependent on sales of PCs. Dell Inc. employs more than 100,000 people worldwide.
Source: Statesman.com
