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Dell said that it has received two buyout bids for the company, in addition to the offer by founder Michael Dell.

Dell said that it has received two buyout bids for the company, in addition to the offer by founder Michael Dell.

Discussion:  Two investor groups have put together bids to purchase Dell.  These offers may outbid founder Michael Dell’s current bid to take the company private.  Investor stock rose about 3% following this possible buyout announcement, which would let current Dell shareholders to continue holding their stakes in the company.  It was reported that Blackstone would prefer to have Michael Dell on its side, but that replacing the CEO is a possibility if the buyout occurs.

Source:  CNN News

Date:  March 25, 2013

Link:  http://money.cnn.com/2013/03/25/technology/dell-buyout/index.html

Discussion Questions:

  • Why does Michael Dell, and these other investor groups, wish to take the company private?
  • What benefits are there to becoming privately owned?

 

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