Michael Dell can kick in equity financing of $ 500 million to $ 1 billion combined with its 15.7 per cent stake in the company to seek majority control of the company, according to Bloomberg. This would push its stake from 50 per cent. With this investment, Dell is contributing more than half of the total $ 8 billion 9 billion equity check. The rest of the takeover would be financed by debt and "perhaps some of the $ 11 billion of liquidity Dell reported that he had as of September 30," according to Bloomberg.
This evolution in the wake of reports that Microsoft may contribute $ 1 billion to $ 3 billion was in talks with Silver Lake Partners to help make Dell private.
However, the Wall Street Journal today announced that Microsoft's role in the new company has been a sticking point in the negotiations. Although the case is still expected to stay on track, Microsoft wants to have a say in some of the operations of Dell rather than a source of funding, according to WSJ sources.
Dell, one machine at a time leading PC, hit hard times lately. Shares continued to lose value as it defends itself against rivals, and despite the numerous acquisitions it made in recent years, there are concerns about the speed with which companies are taking off. Some industry observers hope that this will give the private sector could restart needed.
