Blackstone Group Reported to Mull Counteroffer to Michael Dell/Silverlake Buyout Proposal

Michael Teague |

Michael DellOn Tuesday, shares for the tech company Dell, Inc. (DELL) hopped 0.56 percent to $14.25 amidst speculation of a new buyout deal from Blackstone Group (BX) that would rival the current one being offered by the company’s founder and CEO Michael Dell in tandem with Silverlake Management LLC.

Dell and Silverlake have bid $13.65 per share to purchase the company and take it private.  With the deadline for rival bids coming up on March 25, the BlackstoneGroup’s bid follows on rumors of interest from competitors Hewlett Packard (HPQ) and Lenovo, both of whom lead Dell in global PC sales.

News of counterbids to the originally proposed deal comes amidst a growing backlash from the company’s largest shareholders, Southeastern Asset Management and T. Row Price, who have expressed their dissatisfaction with the $13.65 offer, saying that they think the company is worth at least $20 per share.

With the entry of famed activist investor Carl Icahn, who has just taken up a 6 percent stake in the company and immediately begun clamoring for a significantly increased dividend payout as an alternative to the buyout, into the fray, it is unclear what sort of counteroffer is forthcoming, and what it might look like.

Brian White of Topeka Capital has said that $18 is a fair buyout price for the deal, saying that Blackstone’s interest is genuine, while Sterne Agee’s Shaw Wu has cited the company’s existing high debt load as prohibitive to a substantially better deal.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
BX The Blackstone Group L.P. Representing Limited Par 25.04 0.25 1.01 4,284,455
ECOC ECOC n/a n/a n/a 0
HPQ HP Inc. 13.90 -0.07 -0.50 11,069,895


Emerging Growth

Lithium-X Energy Corp.

Lithium X Energy Corp is engaged in exploring and developing lithium resources. Its projects portfolio includes Albemarle's Silver Peak brine evaporation pond project.

Private Markets

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…


Wealthfront is an automated investment service that serves as an alternative to traditional financial advisory services. The company manages a diversified, continually rebalanced portfolio of index funds on their clients’…