Welcome to the MacNN Forums.

If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

You are here: MacNN Forums > News > Tech News > Blackstone pulls Dell offer, citing earnings, sales drop

Blackstone pulls Dell offer, citing earnings, sales drop
Thread Tools
MacNN Staff
Join Date: Jul 2012
Status: Offline
Reply With Quote
Apr 19, 2013, 11:07 AM
Blackstone Group is ending its offer for control of Dell, citing a 14-percent drop in PC sales for the first quarter of 2013 and a lower earnings forecast for the current financial year. The withdrawal of Blackstone leaves founder Michael Dell and equity partner Silver Lake to fight with Carl Icahn for ownership of the PC manufacturer.

The offer from Blackstone involved a greater-than-$14.25 price for shares, along with the company taking on debt in order to remain a public company. Though Blackstone declined to comment to Reuters, it is believed the annual income forecast dropping from $3.7 billion to $3 billion, combined with lower PC sales contributed to its exit.

Icahn's offer of $15 per share is still on the table, although that plan too requires the company to shoulder more debt. A statement from Dell on Tuesday states that Icahn has agreed to not raise his stake to more than ten percent, and that he could co-ordinate with other shareholders on a bid, instead of his original plan involving owning a 58-percent stake.

The $13.65 per-share, $24.4 billion buyout offer from Michael Dell and Silver Lake is still an option for the company to take, which would end up making itself private, and keep Michael Dell as CEO of the company.
Thread Tools
Forum Links
Forum Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On
Privacy Policy
All times are GMT -4. The time now is 04:20 AM.
All contents of these forums © 1995-2015 MacNN. All rights reserved.
Branding + Design: www.gesamtbild.com
vBulletin v.3.8.8 © 2000-2015, Jelsoft Enterprises Ltd., Content Relevant URLs by vBSEO 3.3.2