Most in the industry believe that the dismal state of Dell's earnings strengthens Michael Dell's hand when it comes to the leveraged buyout offer he and Silver Lake have on the table. The deal for $13.65 looks richer and richer as the company's operating prospects tumble.
Once home prices were battered into submission, private equity firms rode to the rescue, sensing the deal of a lifetime.
We could be settling in for a protracted tactical war when it comes to the Dell leveraged buyout saga. The latest development is that the special committee of the Dell board has asked for more specific information from Carl Icahn and Southeastern Asset Management. The committee apparently wants to determine if the proposal is a formal proposal or merely an alternative to be considered if the current deal isn't approved.
The industry appears to be in the midst of a private equity-backed IPO boom.
The Golden Era of private equity has passed, leaving top funds to grapple with plenty of big deals that fared poorly as the bubble deflated.
When it comes to troubled private equity holdings, the big firms have been busy as of late, especially TPG.
The Financial Times reports that private equity giant KKR might hire David Petraeus, the former director of the CIA and four-star general. Petraeus is said to have a long relationship with Henry Kravis.
How low will Dell's stock go?
Critics of overly aggressive bank regulation have argued that banks will eventually have no choice but to ratchet down their lending, which would have big implications in terms of economic growth.
I was tempted to start this post with a simple, "it's back," but the reality is that the private equity taxation debate never really left us.