Dell may announce today that yes, it is going private

5 Feb 20132 Shares

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Computer giant Dell may reveal today whether its board has accepted an offer led by its founder and CEO Michael Dell to take the company private for about US$24bn. Dell’s board reportedly met last night to vote on the offer, several reports say.

Michael Dell has the support of a consortium of investors that includes venture capital firm Silver Lake Partners and software giant Microsoft.

Silver Lake Management will invest more than US$1bn in the buyout and Microsoft will invest about US$2bn, Bloomberg News reported.

Dell himself, who is also chairman of the board, will reportedly contribute his 15.7pc stake, valued at more than US$3.6bn, as well as US$700m, Bloomberg News reported.

Delisting and going private would provide Dell with greater control over its future direction in a world of software and hardware that has changed a lot since Michael Dell founded the company in 1984.

Dell has not commented on reports about it preparing to go private.

Tina held senior editorial positions at daily newspapers in Ottawa and Toronto

editorial@siliconrepublic.com