Computer maker Dell to go private - WFLA News Channel 8

Computer maker Dell to go private

Posted: Updated:

Slumping personal computer maker Dell is bowing out of the stock market in a $24.4 billion buyout that represents the largest deal of its kind since the Great Recession dried up the financing for such risky maneuvers.         

The complex agreement announced Tuesday will allow Dell Inc.'s management, including founder Michael Dell, to attempt a company turnaround away from the glare and financial pressures of Wall Street.

Dell stockholders will be paid $13.65 per share to leave the company on its own. That's 25 percent more than the $10.88 the stock was going for before word of the buyout talks trickled out last month, but a steep markdown from the shares' price of $26 less than five years ago.       

Dell shares rose 12 cents to $13.39 per share in morning trading, indicating that investors don't believe a better offer is likely.

Once the sale to the group that includes investment firm Silver Lake is finalized, Dell's stock will stop trading on the Nasdaq nearly 25 years after the Round Rock, Texas, company raised $30 million in an initial public offering of stock. Microsoft Corp. is helping the deal along by lending $2 billion to the buyers.

The company will solicit competing offers for 45 days.         

The IPO and Dell's rapid growth through the 1990s turned its founder into one of the world's richest people. His fortune is currently estimated at about $16 billion. Michael Dell, who owns nearly 16 percent stake in the company, will remain the CEO after the sale closes and will contribute his existing stake in Dell to the new company.

Dell's sale is the highest-priced leveraged buyout of a technology company, surpassing the $17.6 billion paid for Freescale Semiconductor in 2006.

  • NewsMore>>

  • Ukraine: 3 killed after Black Sea base attack

    Ukraine: 3 killed after Black Sea base attack

    Ukraine's interior minister says three pro-Russian militants have been killed and 13 wounded after Ukrainian troops repelled an attack on a National Guard base in the Black Sea port of Mariupol in the...
    Three pro-Russian militants have been killed and 13 wounded after Ukrainian troops repelled an attack on a National Guard base in the Black Sea port of Mariupol, Ukraine's interior minister said Thursday.
  • Fears rise for missing in SKorea ferry sinking

    Fears rise for missing in SKorea ferry sinking

    Strong currents, rain and bad visibility hampered an increasingly anxious search Thursday for 287 passengers, many thought to be high school students, still missing more than a day after their ferry flipped onto...
    Strong currents, rain and bad visibility hampered an increasingly anxious search Thursday for 287 passengers, many thought to be high school students, still missing more than a day after their ferry flipped onto its side...
  • Fears rise for missing in SKorea ferry sinking

    Fears rise for missing in SKorea ferry sinking

    More than 100 people were still unaccounted Wednesday several hours after a ferry carrying 476, most of them high school students, sank in cold waters off South Korea's southern coast, killing at least two and...
    Strong currents, rain and bad visibility hampered an increasingly anxious search Thursday for 287 passengers still missing a day after their ferry flipped onto its side and sank in cold waters off the southern coast of...
Powered by WorldNow

200 South Parker Street, Tampa, FL 33606

Telephone: 813.228.8888
Fax: 813.225.2770
Email: news@wfla.com

Can’t find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.