Dell Inc. is nearing an agreement to sell itself to a buyout consortium
led by its founder and Chief Executive Michael Dell and private equity
firm Silver Lake Partners, possibly announcing a deal as soon as Monday,
according to two people familiar with the matter.
Michael Dell is
expected to take majority ownership of the world's third-largest
personal computer maker, which currently has a market value of $23
billion, while Silver Lake and Microsoft Corp would become minority investors, a third person familiar with the matter said.
final price the group is expected to pay Dell shareholders could not be
immediately learned. The deal would mark the largest leveraged buyout
since the global financial crisis.
The transaction is set to be
finalized over the weekend but the buyout consortium is working on
last-minute details and the timetable could still slip, the people
cautioned, asking not to be named because the matter is not public.
investment group, which held negotiations with Dell's camp in New York
on Thursday, has secured up to $15 billion of debt financing to take
Dell private from four investment banks Barclays , Bank of America Merrill Lynch , Credit Suisse andRBC Capital, people familiar with the matter said.
is also advising Silver Lake on the transaction, along with Perella
Weinberg Partners, said two of the people. JPMorgan Chase & Co is advising Dell.
for Dell, Microsoft and Barclays declined to comment. Silver Lake and
Perella Weinberg could not be immediately reached for comment.
part of the transaction, Michael Dell will contribute his existing stake
of almost 16 percent in the company toward gaining majority ownership,
sources close to the matter have said.
Going private would 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.
Dell has formed a special committee of its independent directors and hired Evercore Partners Inc
to assess whether the company is getting the best deal for shareholders
and not one that is just in the best interest of Michael Dell, several
people familiar with the matter have told Reuters previously.
© Thomson Reuters 2013