New York, NY, United States (4E) – Private-equity firm Blackstone and activist investor Carl Icahn have submitted formal bids for struggling PC giant Dell, according to sources familiar with the matter.
Blackstone, the world’s biggest private-equity firm, made an offer ranging from $ 13.65 to $ 14.50 per share, according to a source who declined to be identified because the process has not been made public. Another source said that Icahn was willing to pay $ 15 a share, with a cap on the cash amount to be used.
Both offers will set up a bidding battle with founder and CEO Michael Dell and Silver Lake Partners and their February proposal for a $ 24.4bn buyout of the company.
The moves also could also present a serious challenge to Mr Dell’s plans to take the Round Rock, Texas- based company private. The company currently struggles in the face of intense competition from smartphones and tablets.
Mr Icahn and Blackstone formally submitted their bids on Friday night before the expiration of the company’s “go-shop” period that allows it explore other options to the agreed upon deal. The break fee stays at $ 180mn in the event Dell sells to another buyer since both offers came in Friday night.
A new buyer would now have to pay Dell and Silver Lake a break fee of $ 450mn since the deadline has elapsed.
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