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Sources: Dell Buyout Could Come Monday

It would be the biggest leveraged buyout in years


Dell NASDAQ:DELLDell (NASDAQ:DELL) may finally be about to go private. A deal between CEO and founder Michael Dell, software giant Microsoft (NASDAQ:MSFT) and a private equity firm could be announced as early as Monday, sources told Reuters.

Reports of the possible buyout sent Dell shares surging about 4% in Friday morning trading.

Blackstone CEO Riffs on the Dell Deal
Blackstone CEO Riffs on the Dell Deal

Michael Dell will reportedly team with Silver Lake Partners to form a consortium that will launch a leveraged buyout of the struggling computer maker. Under terms of the deal, Michael Dell will gain majority control over the company with Silver Lake Partners and Microsoft holding minority stakes. He currently holds about 16% of the company’s shares.

The sources did not reveal a potential bid price for the company. However, Dell has a current market value of about $23 billion. A number of prominent banks, including Bank of America (NYSE:BAC), Barclays (NYSE:BCS), Credit Suisse (NYSE:CS) and RBC Capital (NYSE:RY), have agreed to provide up to $15 billion in financing for the deal.

It would be the largest LBO since the financial crisis four years ago.

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