Analysts: Dell could be unstable if alternative bids accepted

March 26, 2013

A long battle looms as bids are evaluated to take over Dell, but analysts are warning customers of operational instability if an alternative proposal to acquire the company is accepted. Blackstone Group and Carl Icahn have made counterproposals to acquire Dell, competing with a $24.4 billion bid from company founder and CEO Michael Dell and Silver Lake partners. A group led by Blackstone offered in excess of $14.25 per share, while Carl Icahn and affiliates offered $15 per share. Michael Dell and Silver Lake offered $13.65 per share when it first announced its intent on Feb. 5 to take Dell private. Dell in a statement said that a special committee would investigate the counterbids, which “could reasonably be expected to result in superior proposals, as defined under the terms of the existing merger agreement.” The board will continue to support the original $24.4 billion until the alternative proposals are reviewed. The board has the option to terminate that agreement. To read this article in full or to leave a comment, please click here

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