Not too long ago the technology world was all a flutter over news that Michael Dell and a consortium of other companies were attempting to purchase Dell Computer and take the company private. Some the major investors in Dell Computer didn’t like the deal and wanted the company to open the doors and consider offers from other potential buyers. Word has now surfaced that other potential bidders for Dell Computer have stepped into the picture and these other companies could be a bad thing for founder Michael Dell.
The Wall Street Journal reports that Michael Dell could end up losing control of his company if one of the other bidders purchases Dell Computer. Blackstone Group LP and Dell investor Carl Ichan have expressed interest in purchasing Dell Computer head of a deadline for offers to be made on the technology company. The tip comes from people who claim to be familiar with the negotiations.
By notifying Dell’s board that they are working on firm bids to purchase the computer company, Blackstone and Ichan have given themselves four more days to put together offers according to the sources. These sources also claim that neither of the potential bids from Blackstone or Ichan go over $15 per share.
Michael Dell and the consortium of companies who started the buyout saga, including Microsoft and Silver Lake Partners offered a buyout at about $13.65 per share. If competing offers win the bid for the technology company, Dell could be ousted from control of his company. However, considering that Michael Dell owns 14% of the company, any deal would certainly make him a huge amount of money.
[via Wall Street Journal]