Dell Shares Rise Amid Reports of Imminent Buyout


Dell shares topped the $14 mark in pre-market trading Friday, a 6 percent increase, after a new report stated that the proposed leveraged buyout of the company could happen as soon as Monday and that investors might get as high as $15 or $16 per share.

The proposed leveraged buyout with lead equity firm Silver Lake Partners could happen as soon as Monday, Reuters reported, citing two people familiar with the deal. Meanwhile, the New York Post reported that the deal could be worth $15 or $16 per share and could even happen Sunday.

In addition to Silver Lake Partners, possible financing for the deal could come from Microsoft, as well as from CEO Michael Dell himself.

[Related: Dell Go Private? History, Research Say It Could Be Good For Everyone Involved]

A move by Dell to go private could help the company become more flexible in terms of technology and allow it to focus on a solutions-building business for enterprise customers by leveraging the numerous acquisitions it has made over the past couple of years, say solution providers.

Dell shares hit $14, albeit briefly as they slipped below $14 again after the market opened, for the first time since late May and have increased significantly since closing Dec. 31, 2012, at $10.14 per share. Dell had been among the worst technology stocks during 2012, with shares falling more than 30 percent in the last calendar year.

PUBLISHED FEB. 1, 2013