PC Maker Dell Going Private With the Help of Microsoft

February 5, 2013 -

Dell has officially gone from being a publicly traded company to a privately owned firm with the help of a $2 billion loan from Microsoft. Given that Microsoft makes the top operating system for the platform, I suppose they have a vested interest in one of the PC market's biggest players staying healthy. Dell completed the terms of the deal that will take the company private, buying out stockholders at $13.65 a share in a $24.4 billion deal.

Dell will ultimately be owned by a small group of private investors led by Dell CEO and founder Michael Dell and investment firm Silver Lake when the deal is completed. Dell says that the work on this deal has been ongoing since August of last year when Michael Dell first floated the idea to the company's board of directors, who then launched a special committee to handle negotiations.

Stockholders get a 35 percent bonus over Dell's stock price as of January 11. But the deal also includes a "go shop" provision that gives the company 45 days to solicit other interested parties for better offers.

More details on the deal can be found here.

Source: Ars Technica


 
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