Dell’s special committee told Carl Icahn that it needs more information about his offer to buy the company, including where he intends to get the debt financing.
Original post: Dell to Icahn: Show us the money
Category : Business
Carl Icahn may be guilty of Michael Dell’s alleged sins.
Original post: Is Icahn (also) low-balling Dell?
Category : World News
Dell’s deteriorating financial condition leads to Blackstone deciding to withdraw its bid for the computer company.
Go here to see the original: Blackstone pulls out of Dell bid
Banks advising bidders on debt to fund highly leveraged buyout of computer maker said to be ‘licking their chops’ over payday
The $24.4bn (£16bn) takeover battle for Dell is set to hand Wall Street firms their biggest advisory payday in at least three years by generating $400m in fee income for deal makers, including a potential $70m windfall for Barclays.
Most of the income will go to banks advising bidders on the debt that will fund the highly leveraged competition for the computer maker, according to a report by the Wall Street Journal. “People who have been starving on an island for years are licking their chops,” said Mike Madden, a veteran Wall Street deal maker. “You are looking at a field day for fees.”
Three bidders are vying for Dell, led by the company’s billionaire founder Michael Dell who has teamed up with private equity firm Silver Lake to make the opening bid. However, two further bids were lodged last month by activist investor Carl Icahn and the buyout specialist Blackstone Group – both topping the founder’s offer of $13.65 a share.
According to the WSJ, a successful Silver Lake/Dell deal alone would create the largest fee pool since the turn of the decade and would generate the most advisory income from a leveraged buyout since the Texan energy group TXU was acquired for $32bn in 2007. Even though there have been larger deals than the $24bn Dell battle since 2010, the highly leveraged nature of Silver Lake’s bid means that banks will generate significant fees from arranging the debt. The banks who arrange the debt for the winning buyout will generate the largest fees, with Barclays, Bank of America, Credit Suisse and Royal Bank of Canada working for the Silver Lake bid. That banking quartet could generate fees of $70m each for brokering the $14bn of debt that underwrites the offer.
Another group of banks advising Dell on how to manage the bids – Goldman Sachs, Evercore Partners and JP Morgan Chase – could earn a total of $60m, according to regulatory filings. Goldman Sachs alone is earning $1m a month from the deal.
Category : Business
Category : Business
Dell auction remains punctuated by question marks.
See the rest here: 6 questions about the Dell deal
Category : World News
A deadline expires on Friday for other bidders to put in offers that top Michael Dell’s bid for personal computer firm Dell.
See more here: Dell buyout bid deadline approaches
Blackstone is considering other Dell CEO candidates, just in case. Oracle’s Mark Hurd is on the short list.
Follow this link: Blackstone weighs Dell bid, considers new CEO
Category : Business
Dell’s fuzzy debt math, Herbalife’s battle, and more in today’s news.
Read the original post: Pre-Marketing: Dell’s fuzzy debt math