Dell in talks with buy-out firms to go private: report
15 January 2013
Dell Inc, the world's third-largest personal-computer maker, is in talks with buy-out firms for a leveraged buy-out of its shares from the market, after the company's stock dropped 30 per cent during the past one year.
Reports quoting market sources said Dell has discussed a potential sale with at least two buy-out firms that specialise in acquiring dud stock.
Dell did not, however, deny or confirm the report.
Reports quoting a source close to the persons, meanwhile, said Dell is discussing a leveraged buyout with private equity firms TPG Capital and Silver Lake.
While a share buy-back would be expensive for the promoters, Dell expects it to give the company the necessary freedom to plan a jump-start once again.
Shares of the Round Rock, Texas-based Dell soared 13 per cent on Monday following report of the buy-back plan. Dell stock closed at $12.28 on Monday, after it touched $12.83 - its highest level since May.