Dell Inc. (DELL) Monday was finalizing a deal to take the
computer-maker private at $13.50-$13.75 a share, said people
familiar with the matter, who cautioned that talks are ongoing.
As currently envisioned, Microsoft Corp. (MSFT) would invest
about $2 billion in the form of a subordinated debenture, a
less-risky investment than common stock; Silver Lake Partners, the
private-equity firm, would invest more than $1 billion; and the
investment firm of Michael Dell, the company's founder and chief
executive, would invest about $700 million, the people said. Mr.
Dell is also contributing his stake, nearly 16% of the company's
shares, worth at least $3.7 billion at the share price envisioned
for the deal.
The people said a final agreement hadn't been reached and terms
could shift.
Monday morning, Dell shares were trading around $13.24, down
2.9%.
The deal, which would value the company at more than $23
billion, would mark an unofficial end to the era when PCs were the
dominant computing device. It would also be the largest such
transaction since the financial crisis.
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