Michael Dell to use personal funds to buy back company

Michael Dell, the founder of Dell, is planning to use personal funds to buy back equity in the company and turn it private again

 

Michael Dell is planning to use as much as $1 billion of his own personal cash to buy back the ownership of the company he founded in 1984.

Mr. Dell already owns a 15.7 per cent stake in the company and a buyout that takes his ownership past 50 per cent would allow him to turn the company private again - something he has previously expressed interest in doing.

According to Bloomberg, the CEO would then be able to reposition the company to deal with the shrinking PC market and the greater demand for mobile devices - without having to answer to the shareholders.

Two other firms (Silver Lake and Microsoft) are also said to be planning to invest in the equity check - which will run to between eight and nine billion dollars.

Microsoft's involvement appears to have caused a few hiccups to negotiations, as Redmond wants a say in Dell's operations rather than just offering funding. Despite this, the deal looks set to stay the course and could give Dell the shot in the arm it needs.

Despite being the world's third largest PC maker, the American company has seen its stock lose value as consumers turn to the likes of the iPad or Android devices.

Source: Bloomberg

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