recommended reading

The Bidding War for Dell Has Officially Begun

Paul Sakuma/AP

Never mind that Dell buyout deal proposed by founder and CEO Michael Dell in early February: activist investor and professional company-shaker-upper Carl Icahn has put a better offer on the table in a letter released by the PC manufacturer today. Icahn, unhappy with the share price Dell offered, is offering to pay $15 per share, almost 10 percent better than the $13.65 price Dell and Silver Lake Partners proposed. Icahn's deal would price the company at $15.5 billion, according to Deal Journal's David Benoit. Icahn is not alone, however: investment firm Blackstone has also a made its own, separate proposal for $14.25 per share. Since Dell himself has a lot to lose in a buyout—starting with control of his own company, as The Wall Street Journal 's Shira Ovide explained yesterday—the Icahn and Blackstone proposals could trigger a bidding war. Dell may make a better offer, Ovide suggests, "But if Blackstone, Mr. Icahn or others unseat the Silver Lake deal, Mr. Dell may wind up on the sidelines without a say in the company. That might put the onus on Mr. Dell and Silver Lake to up their bid," she writes.

Dell has not commented on the new bids yet, but Bloomberg's Aaron Ricadela has sources saying that he is willing to work with third parties to sweeten his offer. One analyst still thinks the most likely scenario keeps Dell in control of the company with help from Siver Lake "for something north of what they’re currently offering."

Read more at The Atlantic Wire

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Modernizing IT for Mission Success

    Surveying Federal and Defense Leaders on Priorities and Challenges at the Tactical Edge

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • Effective Ransomware Response

    This whitepaper provides an overview and understanding of ransomware and how to successfully combat it.

    Download
  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download

When you download a report, your information may be shared with the underwriters of that document.