Dell Michael to Buy Majority Stake in Dell (NASDAQ:DELL)

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Media has been rife with reports that Dell Inc (NASDAQ:DELL) wanted become a private firm, and now Michael Dell seems ready to take a majority stake in the company he founded on his own dime.

Eyeing a stake of over 50% Dell is apparently willing to pay as much as USD $500 million to $1 billion out of his own pocket. When combined with his current holdings of 15.7% stake he will easily gain majority ownership and control of the company.

Various sources report that in addition to Michael Dell’s private investment, the company would have more than half of approximately $8.5 billion in equity check. The takeover’s balance would be financed by company debt and some $11 billion in cash reserves that Dell holds as of their September 30th report.

It should be noted that this will stave off recent attempts by Microsoft Corporation (NASDAQ:MSFT) to woo Silver Lake Partners to dole out some coin to help the software maker to attempt to bid for a majority stake in Dell and private under Microsoft management. Their plan to put up as much as $3 billion will now be moot.

A key to Microsoft was to gain some level of control of Dell, which also gave regulators pause on the issue. Negotiations are expected to crumble at this point.

Running a gauntlet protecting itself against rivals has added to the hard times that the PC-maker – once the largest in the world – has had to face recently. The company itself is in need of a reboot that analysts are hoping will reinvigorate Dell and pump capital into some of the acquisitions the company has made in recent years to help them take off.


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