Dell Technologies Inc (DELL)

[TOUCAN]

Dell Takes Itself Private With $25 Billion Buyout

By Klint Finley 09.12.13 1:00 PM
http://www.wired.com/wiredenterprise/2013/09/dell-private/?cid=social11857154



It’s official: Dell is going private. Today, the company announced that stockholders have approved a buyout by eponymous founder, chairman, and CEO Michael Dell and private equity firm Silver Lake Partners.

Stockholders will be paid $13.88 in cash per share, plus a $.08 per share dividend for the third fiscal quarter, bringing the total buyout price to $24.9 billion.

News of the discussions between Dell and private equity firms, including Silver Lake, broke in January of last year. But the idea has been in the works for much longer. Michael Dell first mentioned the possibility in 2010, and he has reportedly been in talks to take the company private since June 2012.

Dell’s traditional businesses — PCs and server hardware — are in decline. Mobile devices like smartphones and tablets are eating away at desktop sales, and the new world of custom servers has seriously changed the data center landscape. So the company has been transforming itself into an enterprise software and services company. Michael Dell argues that the company will be better able to complete this transformation as a private company.

He may be right. HP has struggled with a similar transition, and in 2011, the HP board fired then CEO Leo Apotheker over a controversial acquisition of enterprise software company Autonomy. Dell may be more free to make bold decisions — and to think more clearly about the ramifications of such decisions — in a private environment.

But Dell’s transition from public to private company hasn’t been smooth. Michael Dell owned 15.7 percent of the company himself, but had to convince the rest of the shareholders to agree to a buyout. Activist shareholder Carl Icahn fought the process. But as Dell’s profits tanked by 79 percent, a buyout deal had to look attractive to stockholders.

Meanwhile, Dell has been on an acquisition spree. It began in 2010 with a public bidding war with HP over storage company 3Par. Dell ultimately lost, but has been on a shopping spree ever since, acquiring cloud management company Enstratius, software-based networking company RNA Networks, database management company Quest, and the storage company Compellent, among others.

[TOP1]

Icahn Should Just Buy AMD

[Carlito]

Yup

Big manipulation on WED.>>@low $12

Insiders gonna BANK $$>>BIG


my $12 puts >> worthless

[throttleback]

Dell gunna take off

[MWM]

Time running out: What is Michael Dell thinking?

Michael Dell and Silver Lake seem willing to let the deal to buy the company he founded go to a vote this Friday with a price tag of $13.65. If that vote is taken, chances are good the deal will not be approved.

Full Story:
http://www.cnbc.com/id/100929521

------------------------------------------------

[MWM]

Nah, I think icahn just wants DELL to raise his offer...

[redwriggler]

Is it possible that Icahn wants the stock to tank, so he can snatch up some more? Either way, I hope your right. I took a Aug Put at $12. Good luck to us!

[MWM]

Here is the thing, many think Icahn was just trying to make Michael Dell bump up his offer, I think Icahn will throw in the towel soon...

[redwriggler]

Let's say Michael Dell's takeover fails, what is to stop Icahn from offering something similar?

[MWM]

Dell its collapse time!

In some $12 puts at .16!

[mykoll]

10CENT INCREASE WHAT A JOKE!MICHEAL

[AG25]

His like a real life gordon gecko haha. The man is a legend!

[I-Man]

IMO, if Icahn is into this, retail investors should be out.

[Dutchlion]

Hahha yeah it's a great interview I've been watching CNBC for like 12hrs today I did sell my position last week on the small pop...but def watching

[AG25]

This interview in cnbc is awsome. If he gets the company i am all in. His track record says it all.

[Dutchlion]

Yeah that's why a billionaire wants to buy them ...
Every office building needs PCs

U prob said the same thing about cell phones LMAO

[Gilda99]

Dell Buyout Battle Approaches Heated Phase

http://finance.yahoo.com/news/dell-buyout-battle-approaches-heated-234800250.html

[Gilda99]

Even today's strong market can't do much for DELL.

[RickKayne]

I think I screwed this one up. Holding May 15 calls.
A week and a half left.
Can't win them all.

[RickKayne]

That's true there is a shift going on.
Blackstone was essentially paid 50million to write a letter. Their involvement was half hearted. Icahn will fight.

[fink]

Bottom line is, who buys computers anymore?
Go to any Office Max or Best Buys and look at the lap tops and prices.
Dell is no longer a competitor. It's probably a dieing industry like the 56k modem.
Toshiba is $100s below the Dell.

It's just a box. I spend way more time on my phone than the Lap Top now.

Industry changing. FWIW I still have my 13 year old Gateway up stairs that hasn't been turned on in 8 years .

[Wildbilly]

Breaking News: Blackstone abandons race for Dell
FINANCIAL TIMES

Blackstone has abandoned its $25bn offer for Dell after weeks of due diligence paid for by the company, people familiar with the matter said.

The withdrawal from the race follows reservations expressed by Blackstone’s private equity fund investors on the merits of the deal, and concerns that the stock market had already valued Dell fairly, these people said.

[RickKayne]

Definitely, they uncovered some very important data regarding Dells recent but back of stock the last couple years and found Dell thought 15.25 average was a heck of a deal. Now they want to snake it at 13.65?
This is far from over we see at least 15.50 before anyone approves or concedes. Maybe much higher.
I watched an old 60 min Interview of Icahn, he is a true Raider.

[Gilda99]

I agree, this scrap is far from over. There was merit in the Southeastern Asset Management open letter to the Special Committee of the Board of Directors and, of course, you are correct about Ichan in every respect.

[RickKayne]

Sounds like there will be some carnage. Go Carl!

http://siliconangle.com/blog/2013/04/09/icahn-threatens-proxy-fight-as-dell-buyout-drags-on/

That's what I'm talking about.

[RickKayne]

I still want 15.50 out of this by May!
Come on guys fight over it like the company is the last scrap of meat in in the dog yard.
Icahn never let's go easy. Paying him 50 million for his "dd" during the bidding is not enough. He plays for larger stakes, I say Icahn makes noise until he profits minimum 750 million!
Just a guess.

[360spyder1]

http://news.yahoo.com/michael-dell-spoke-blackstone-during-shop-source-155247372--sector.html

[RickKayne]

The market can't know everything in short term negotiations.
I'm hoping an all out war breaks out over the company. Ideally the ones with stronger inside bid, box the founder out and he gets anxious.
Not adding to any bets just watching the game.
Looking for 15.50 +

[Thanksforplaying]

The way mkt is trading today. Looks like deal will be done less then 1450

[RickKayne]

The question is how bad does Big Mike wants his company back.
Does BX and Icahn really want this company, or is there some serious posturing going on.
If Mike wants to stay in the game must up his offer to 15.50 soon.
Carl just wants to make a quick half billlion. Can't blame him.

[trading94]

yes for sure,easy around 16-17 IMO

[stutz7]

Anyone thinks this gets a higher bid???

[Autom8]

DONE! im out calls! bought $15 april puts!

[Autom8]

Maybe now Michael Dell will sweeten his original offer?

[Autom8]

YES! hell, $16.00 would make me very happy!

[360spyder1]

I'll take an 18 PPS in round 2.

[Autom8]

"With three forces at work, we believe a higher buyout bid is in the cards and we continue to believe that an $18 buyout price for Dell makes sense," Topeka Capital Markets analyst Brian White wrote in a note to clients. "However, it is unlikely that this price level will occur in the first round of bidding."

[RickKayne]

The new deal should bid $14.95 yet still not high enough!
The more power players scrapping for the company, the better lift.
I hope these guys start bidding with their egos!
Lol.
16.50 by June?

[Autom8]

DELL READY FOR THE ROCKET LAUNCH!as high as $14.68 so far in pre-market trading

[Autom8]

I'm in dell calls only for the takeover bids, once that is done and divi pays, I'll sell the calls and go short! My bet is at that point the stock will be overheated, and be poised to take a dip

[360spyder1]

Agree... Ichan should just cut the BS and slap a $17 PPS on DELL :)

My Options and I would enjoy seeing that.

[360spyder1]

If ihub has correct information (there is no reason to believe they would supply erroneous #'s) the Shorts position in DELL... 28.96M & 2.2% of Float.

[Thanksforplaying]

Bloombrrg reports icahn is bidding 15 bucks. Dell will announce other bids monday. They have 3 or 4 days to re bid. Interesting fact is they only are allowed one more bid so if they relly want it they better make it count

[Thanksforplaying]

Why

[Autom8]

I'll be short the day of divi payment

[Autom8]

$Dell$ show us a 52wk high !!!!!

[Thanksforplaying]

They have till tues to respnd to icans and blackstones bids. Mon should be interesting!

[Lucky_Charm$]

is there a date set for the new proposal?

[Thanksforplaying]

Also keep in mind some funds are short this thing thinking it would be no better then1365. Maybe some have been covering. Would be interesting to know the short position

[Autom8]

http://mobile.bloomberg.com/news/2013-03-23/blackstone-group-icahn-said-to-submit-proposals-to-dell.html