Dell in buyout talks - report

News IT Global 15 JAN 2013
Dell in buyout talks - report
Dell is in talks with two private-equity firms about taking the US computer maker private, Bloomberg reports, citing two people familiar with the matter. The buyout talks are only preliminary, they added. Dell contacted several large financial institutions about financing an offer, one person said.

Dell, whose PCs are facing strong competition from tablets and smartphones, has been using acquisitions to maintain market share. Its global PC shipments fell by 20.8 percent to 9.48 million units in the fourth quarter, according to IDC. CEO Michael Dell owns 15.7 percent of the company, and has previously said he had considered taking the company private.

Dell is reorienting itself towards supplying PCs and services to businesses and public sector organisations as well as releasing its own tablets. It still has a USD 5.15 billion net cash balance. On news of the talks, its stock price shot up so quickly that trading was suspended for a short time. 

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IT

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Dell EMC

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Global

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IT - applications, Consumer devices, Consumer, Enterprise, M&A buyouts & divestments

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