Northern, WI 1/18/2013 (usmarketbuzz) – Post the financial crises, a buyout is in the making. The losing battle that Dell Inc. (NASDAQ:DELL), the third largest personal computer maker, is fighting with the major tablet manufacturers seems to have a hand in this buyout. Silver Lake Management and partners are on the verge of sealing this by organizing up to $15 billion in funds for this. Silver Lake has already notched up $7 billion for a new fund, and this could reach the $10 billion, that is what well informed sources make it out to be.
Dell Inc. (NASDAQ:DELL) did pretty well for the fiscal year 2012. They even termed it as the best financial performance, year wise in their history. Revenue was up by 1 percent from the previous year. Gross margins, operating income, and earnings per share rose to record levels. The whole process is indeed a private affair; this is according to a person who did not want to be named. At this point of time Dell Inc. (NASDAQ:DELL)’s enterprise value is estimated to be in excess of $19 billion.
There is an imminent certainty that lenders who include Credit Suisse Group, Royal Bank of Canada, Barclays, and Bank of America Corp (NYSE:BAC) could possibly disclose terms to the small conclave of the buyers of the bridge loan. It is a matter of days, they say, before the announcement of the deal. Dell Inc. (NASDAQ:DELL) incidentally lost a third of its value last year. The reorganization of the corporate structure is imminent after the privatization and Dell Inc. (NASDAQ: DELL) will subsequently focus on datacenter devices and letting go of the PCs. Technology in the industry is changing very rapidly, new issues and challenges, are an everyday occurrence, and Dell Inc. (NASDAQ:DELL) has met these challenges head-on and come out successfully.
A knowledgeable source was of the opinion that Dell Inc. (NASDAQ:DELL) could take a different path financially after this transaction. Michael Dell, a major stakeholder could align himself with this buyout, analysts says he owns around 16% of the company, and based on yesterday’s closing price it could be anywhere close to $3.45 billion. From a historical perspective, tech buyouts especially after the financial crises have hit roadblocks. Seagate Technology is a case in point. The biggest thus far after the crisis, to be successful was Blackstone Groups LP’s $ 3 billion purchase of Emdeon Inc. However, all the stakeholders, Dell Inc. (NASDAQ:DELL), the major banks, and even Silver Lake spokesman declined to make any comments. Well, we will have to wait and see.
Share Prices of Bank of America Corp (NYSE:BAC) fell by 0.18% to reach $11.28
Share prices of Dell Inc. (NASDAQ:DELL) rose by 1.67% to reach $12.82
