Dell’s Buyout Deal Could Go Public On Monday

DellOn last Friday, sources said that Dell Inc. is closing into an agreement to go private by selling itself to a buyout worth more than $24 billion. The buyers are Michael Dell, Dell’s founder and the current Chief Executive Officer and Silver Lake, a private equity firm. The buyout arrangement is expected to be publicized on Monday.

The buyout affiliation is negotiating to takeover Dell for $13 to $14 a share. These rates calculate to an equity valuation between 22.6-24.4 billion dollars.

Michael Dell will hold the majority of the ownership alone and on the other hand, Silver Lake and Microsoft Corp. will be minority investors as the sources inside say. The sources are cautioned and asked not to be named as the matter hasn’t gone public yet.

The new investors are clearing Dell’s debt of $15 billion by financing the takeover. Four banks are supporting the take over and they are- Barclays, Credit Suisse and RBC Capital, Bank of America and Merrill Lynch.

Barclays and Perella Weinberg Partners are advising Silver Lake and Dell is being consulted by JPMorgan Chase & Co.

Michael Dell is to sell his 16% ownership shares to gain major ownership when the company will go private.

Both parties declined to make any statement.

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