Icahn, Blackstone preparing bids to buy Dell
By The Associated Press
Published: Saturday, March 23, 2013, 7:12 p.m.
Michael Dell may face some competition in his effort to take over the computer maker he founded.
The Wall Street Journal reported on its web site Saturday that buyout specialist Blackstone Group and activist investor Carl Icahn have both notified a special committee of Dell Inc.'s board that they are working on bids for the company.
Michael Dell and a group of investors announced their bid, valued at $24.4 billion, in early February. The Round Rock, Texas, company's board set a 45-day period for offers that might top that bid. That period expired Friday.
The Journal, citing unnamed sources, reported that the notification will allow Blackstone and Icahn four more days to develop their offers.
A Dell representative declined comment on the report. Blackstone and Icahn representatives did not immediately return calls seeking comment.
Icahn and other investors have criticized the $13.65 a share offer from the Michael Dell group as being too low. Several buyout scenarios tying Blackstone to Dell were leaked to the media last week. Dell shares closed Friday at $14.14, an indication that investors expected to see a higher bid. Some analysts have predicted Dell ultimately will be sold for $15 to $16 per share.
Southeastern Asset Management, Dell's second largest shareholder after Michael Dell, has asserted the company is worth closer to $24 per share.
For its part, the four-member board committee maintains it's selling Dell at a fair price, one that reflects the dimming prospects for the PC industry as more technology spending shifts to smartphones and tablet computers.
Dell, the world's third-largest PC maker, has said Friday's deadline for competing offers could be extended if its board believes other suitors would benefit from more time to examine Dell's books and hash out other details.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- FBI’s elite surveillance team trying to find ‘Mo’
- Car hits deer, which flies into jogger
- Suspense builds for pipeline report
- Boy has emergency, dies on flight to visit family
- Feds curtail paper applications for health care law
- Former top Obama aide to work on health law
- Longtime intel adviser resigns as feds learn of link to China tech company
- Snowstorm silences north Texas
- U.S. apple growers eye open trade with China
- Sen. Rand Paul of Kentucky promises new GOP on way
- Deported vet glad he’s back in states