Today, Bloomberg reported that Dell has another suitor: Blackstone Group. The investment company is said to have submitted an offer to buy Dell, a computer giant, at a price that ‘rivals’ the prior $24.4 billion offer that was tendered.
The prior deal, tendered by Silverlake and Michael Dell – partially funded by Microsoft – has been criticized by certain investors as a low offer that doesn’t properly value the company. Dell must respond to the offer by Tuesday.
If Blackstone offers a substantially higher dollar figure for the OEM, the margin could force the prior consortium’s plans off the rails. However, for now, the terms of the proposed Blackstone deal are unknown.
Blackstone’s offer is likely to excite and delight extant Dell investors, most especially Southeastern, an investment group that has made noise concerning the $24.4 billion price.
Dell is currently trading at $14.14, a large margin of the prior buyout price of $13.65, indicating that investors are anticipating a higher closing price to take Dell private.
Top Image Credit: Steve Snodgrass