Dell LBO competitor not likely
If you're a shareholder of Dell, you're hoping for the best as the LBO drama plays out.
You can be forgiven if deep down you're holding out hope that a secret consortium of private equity companies and big investors are putting together a bid right now to force Michael Dell's consortium to pony up even more. But you're probably resigned to that not happening. Any go-shop period will likely expire without another bidder coming forward.
Reuters quotes one industry executive who said that:
"I just don't think it is doable to break up the current consortium. When management is rolling over (their stake) and they have picked a partner (Microsoft and a big Canadian pension), it is hard to top the agreed offer." Michael Dell has agreed to roll over his 16 percent stake in the company. If a better offer were to come forward, he might make the same offer. But he obviously prefers to work with Silver Lake and Microsoft, an ally for nearly his entire career. Dell has formed a special committee of its independent directors, and it has hired Evercore Partners "to assess whether the company is getting the best deal for shareholders and not one that is just in the best interest of Chief Executive Michael Dell."
In the end, the board will have to take pains to ensure that it has complied with all laws and shareholder expectations. As of now, itt would take a lot to bust up the current deal-in-the-making, which all agree is on the verge of announcement. But an auction would be great.
- here's the article