Microsoft Corp is in discussions to invest between $1 billion and $3
billion of mezzanine financing in a buyout of Dell Inc, CNBC cited
unidentified sources as saying on Tuesday.
Private equity outfit
Silver Lake Partners is trying to finalize a bidding group to take the
world's No. 3 PC maker private, and has opened discussions with
potential equity partners, sources familiar with the matter have said.
Dell
also has formed a special committee to take a close look at any
potential deal on the table, multiple sources with knowledge of the
matter told Reuters. If successful, it would be one of the largest
corporate buyouts since before the global financial crisis.
Microsoft,
which accelerated its foray into computer hardware in 2012 with the
launch of the Surface tablet, will provide the capital in the form of
mezzanine financing according to CNBC, which is a hybrid of debt and
equity.
Microsoft and Dell both declined to comment on the CNBC
report. Shares in Dell gained climbed 2 percent to $13.08 in late
morning trade.
© Thomson Reuters 2012