Navigate this market better. Subscribe for FREE stock alerts and information.

Wednesday, January 30, 2013

Dell founder may control PC maker after buyout-Bloomberg, (NASDAQ: DELL)

Dell Inc's founder and chief executive may pay as much as $1 billion out of his personal fortune to assume control of the world's No. 3 PC maker in a leveraged buyout, Bloomberg News reported on Wednesday citing people familiar with the matter. Michael Dell may contribute equity financing of $500 million to $1 billion in addition to his approximately 16 percent stake in Dell, worth about $3.6 billion, to push his ownership above 50 percent and have majority control, Bloomberg said.Michael Dell's partners - private equity firm Silver Lake and giant software company Microsoft Corp - would contribute $1 billion to $2 billion each toward an equity check of $8 billion to $9 billion, Bloomberg said.Details of the equity financing were still being finalized while making sure Dell has explored all possible alternative options, including a sale to other buyers, Bloomberg said.Representatives of Dell, Silver Lake and Microsoft did not immediately respond to requests for a comment.

Dell Inc. (Dell) is a global information technology company that offers its customers a range of solutions and services delivered directly by Dell and through other distribution channels. Shares of DELL remained unchanged at $13.25. In the past year, the shares have traded as low as $8.69 and as high as $18.36. On average, 30526500 shares of DELL exchange hands on a given day and today's volume is recorded at 67378.