Report: Blackstone Backs Out Of Bid For Dell
According to a Reuters report, Blackstone Group LP, a private equity firm out of New York, has removed its bid for Dell, which is trying to become a private company.
Blackstone’s move leaves the door open for chief executive and founder Michael Dell, who is uniting with Silver Lake, to attain the company for $24.4 billon.
After one month of making its bid to challenge Dell’s founder to take the PC maker private, the company removed it. Its reasons included the extraordinary 14 percent decline in personal computer sales in the first quarter of 2013. It was also unsettled by Dell’s lower earnings forecast.
Dell is the world’s third largest manufacturer of personal computers and the company said its operating income is suspect to drop $3 billion in the present fiscal year from its previous $3.7 billion.
Dell isn’t the only other person vying for the company. Carl Icahn, an activist investor and billionaire, is also in the mix. Icahn already has some tremendous stake in Dell. According to analysts though, Icahn has a slim chance of attaining the company even though Dell’s offer has garnered disapproval from several large shareholders who think the offer doesn’t give the company enough value.
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