Sunday, January 29, 2023

Icahn, Blackstone Offer Alternative Dell Buyout Bids

Dell’s plan to become a private company took a turn over the weekend when the company’s board received two competing offers. Two investor groups, one led by Carl Icahn and one led by Blackstone Group, have made bids, which may be superior to the original offer from Michael Dell and Silver Lake Partners.

CNNMoney’s Chris Isidore reported, “Dell said that it has received two additional buyout bids from investor groups led by Carl Icahn and Blackstone Group, and that both bids have the potential to top the offer by founder Michael Dell to take the computer maker private. The board said it will enter into negotiations with both groups. It also said that CEO Michael Dell has agreed to the ‘possibility of working with third parties’ regarding their buyout proposals.”

Bloomberg’s David Carey added, “Blackstone, the world’s biggest buyout firm, and activist investor Carl Icahn made separate offers last week that rival a $24.4 billion bid for the computer maker by Dell founder Michael Dell and Silver Lake Management LLC, according to a statement today from Dell. The shares rose 3.2 percent to $14.59 at 9:31 a.m. in New York, 6.9 percent above the Silver Lake offer.”

All Things D’s Arik Hesseldahl noted, “Carl Icahn… is offering as much as $15 a share for about $2 billion worth of the company. His offer includes a $5 billion equity commitment, and another $2 billion in additional financing on top of shares already owned. Icahn made a significant purchase said to amount to as much as 6 percent of Dell’s shares outstanding earlier this month. Blackstone is leading a group that includes Insight Venture Partners and Francisco Partners in offering at least $14.25 a share for Dell. Current shareholders would be allowed to hold their current stakes subject to caps, and those remaining shares would continue to be traded on the Nasdaq exchange.”

According to the AP, “The committee [from Dell’s board] has determined that the bids could be superior to the proposal from Dell and Silver Lake, which amounts to $13.65 per share.”

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