Blackstone Ends Pursuit of Dell
The private-equity firm, Blackstone Group LP is ending its pursuit of Dell Inc. after they claimed that they would try to top a leveraged buyout by the computer maker’s founder. Blackstone has tried to place a bid that would top the offer of Michael Dell, the founder as well as the private-equity firm Silver Lake Partners. Although the reasons for why the company chose to drop their potential bid that would keep the company in the hands of public shareholders. Due to the halt to the rival deal effort, the Silver Lake and Mr. Dell are able to push ahead with the offer to buy all of the company’s shares at $13.65 apiece. The firm is trying to save the company because there has been evidence from late March that there is a sinking market for personal computers.
I believe that since computers fell nearly 14% in the first quarter, it might be Dell Inc.’s best bet to allow Blackstone Group to buyout the computer maker’s founder because they may be able to save the company from declining in their sales. The negotiations between the two companies also show that there have been talks about other potential CEOs for Dell, which might be a better plan for the company in the future.
Written by: Samantha Chin
Source: The Wall Street Journal