Michael Dell may have another bidder to outdo
Blackstone could be mulling its own offer for the PC maker. Dell's $13.65 per share proposal is looking skimpy.
According to Bloomberg News, Blackstone Group is considering whether to top the $24.4 billion offer CEO Dell and Silver Lake Partners have made for Dell (DELL) the company. Activist investor Carl Icahn has argued that their $13.65 per share offer for the Round Rock, Texas-based company significantly undervalues it. Icahn has pressed for a special dividend instead.
Dell's two largest outside investors, Southeastern Asset Management and T. Rowe Price, have also criticized the Dell and Silver Lake offer for being too low. Analysts surveyed by Bloomberg expect a bid could reach $15 per share, which seems more reasonable.
Dell's board has until March 21 to seek a better offer than the one its founder has made with Silver Lake. So far, two other logical buyers for Dell, Hewlett-Packard (HPQ) and China's Lenovo, have reportedly taken a pass, underscoring the fact that they have plenty of problems of their own. Dell would be a challenge for any company to turn around.
Ever since Michael Dell returned to the CEO job in 2006, investors have expected the computer company to assume a leadership role in the tech industry. That just hasn't happened. Not only did Dell lose its title as the world's largest PC maker, but its efforts to gain a foothold in new markets such as smartphones and tablets have flopped.
Ironically, Dell's recent earnings were better than what analysts had expected, which admittedly wasn't too difficult. The results, though, indicated that Michael Dell's strategy of focusing on business customers was starting to pay off. This stoked suspicions that he was taking the company off shareholders' hands for much too cheap of a price.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
The company tries to tamp down criticism from activists who argue that the mascot promotes childhood obesity.
- Oklahoma senators change tune on disaster relief
- At software giant SAP, autism is an asset
- Mike Bloomberg's next career: Taxi magnate?
- Shotgun wedding for Saks and Neiman Marcus?
- Charles Ramsey gets burgers for life, but no Big Macs
- New Jersey bar sting turns up 'swill'
- Mike's Hard Lemonade goes after male drinkers
- Big job gains expected next year, economists say
- Yum aims to fatten up by doubling Taco Bell sales
[BRIEFING.COM] The major averages ended modestly lower with the S&P 500 shedding 0.3%.
The benchmark average saw an opening loss of 1.2% after Japan's Nikkei tumbled 7.3%. Japanese stocks sold off amid continued volatility in Japanese Government Bond futures as the 10-yr yield spiked almost 16 basis points to 1.002 before the Bank of Japan's JPY2 trillion liquidity injection caused yields to retrace their gains.
Adding insult to injury was news out of China where the HSBC ... More
More Market News
In the never-ending contest for sales, American carmakers are pulling ahead.