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NewsPoster Apr 19, 2013 10:07 AM
Blackstone pulls Dell offer, citing earnings, sales drop
Blackstone Group is <a href="" rel='nofollow'>ending its offer</a> for control of Dell, citing a 14-percent drop in <a href=" erialize/" rel='nofollow'>PC sales</a> 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. <br />
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The offer <a href="" rel='nofollow'>from Blackstone</a> 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 <a href=" logyNews" rel='nofollow'>to</a> <em>Reuters</em>, it is believed the annual income forecast dropping from $3.7 billion to $3 billion, combined with lower PC sales contributed to its exit. <br />
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<a href=" ith.the.special.committee/" rel='nofollow'>Icahn's</a> 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. <br />
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The $13.65 per-share, $24.4 billion buyout offer from <a href=" der/" rel='nofollow'>Michael Dell and Silver Lake</a> 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.
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