Dell Shares Up On Report Of Buyout Talks
Michael Dell Offers $24.4B To Take His Computer Firm Private
The stock rocketed nearly 13% today after Bloomberg reported that the computer and gadget maker is talking with private equity firms about deals that could take it private. CEO Michael Dell owns 15.7% of the company, which should help firms allied with him to raise the money needed for a deal. But the business news service says that its unnamed sources note that talks “are preliminary and could fall apart” if partners can’t fund a deal or determine how they can cash out later. Dell has a market value of $21.4B following Monday’s stock boost. That’s still down 22.6% over the last 12 months — and more than 40% over the last five years. Dell has suffered from its inability to keep up with consumers’ demand for smart devices including smartphones and tablets.