Dell's Bid To Go Private Remains In Limbo
It's been more than four months since word leaked out that CEO and founder Michael Dell was working with a couple of private equity firms to take the computer company private. And it seemed like a done deal on February 5 when the company announced a $24.4-billion leveraged buyout deal led by private equity company Silver Lake Partners and a $2 billion loan from Microsoft.
But the effort has become mired in wrangling over the deal's $13.65-per-share price, with some shareholders saying that offer doesn't reflect the company's true value. Those include Carl Icahn and his affiliates and investment firm Southeastern Asset Management, which is maneuvering to control Dell's board of directors.
Meanwhile, Round Rock, Texas-based Dell is struggling as the PC market stalls and demand for server hardware slows. For its first quarter ended May 3, Dell reported a 2 percent year-to-year drop in revenue to $14.1 billion and a 79-percent plunge in net income to $130 million.