Dell closing in on $23B deal to go private -- WSJ

Dell founder and Chief Executive Michael Dell.

(Credit: James Martin/CNET)

Dell is reportedly close to finalizing a deal to go private -- but it's still not there yet.

The Wall Street Journal reported today that the PC maker is nearing a buyout deal worth $23 billion, or between $13.50 and $13.75 per share.

According to the WSJ, here's how the plan is supposed to break down:

• CEO Michael Dell will contribute his 16 percent stake, which is valued at $3.7 billion.


• An investment firm he controls will contribute another $700 million.


• Microsoft will invest $2 billion in the form of a "subordinated debenture," which is said to be less risky than common stock.


• Private equity firm Silver Lake Partners will invest more than $1 billion.


• At least four banks are said to be arranging $15 billion in debt to help fund the deal.

To recap, reports started circulating in January that the Round Rock, Texas-based corporation was mulling over reverting to operating as a private company.

At the time, ... [Read more]





by Rachel King via CNET