There were reports on Tuesday that another private equity firm might place a bid to take Dell Inc. (DEL) private.
According to the report by Bloomberg, a group of shareholders led by Blackstone Group (BX) might make an offer to purchase Dell. Currently, Michael Dell and Silver Lake Management have offered $13.65 per share to take Dell Inc. private. However, until March 22 Dell Inc. is able to solicit competing offers; this period is known as the “go shop” period.
A variety of shareholders have been pressuring Dell and Silver Lake to raise the current $13.65 per share bid, opposing such a low offer. Most analysts expect the company to go private for roughly $15 per share. A competing offer could make Dell and Silver Lake to finally raise their bid.
If Dell were to go private for $15 per share (5.4 times EBITDA), it would be among the lowest tech buyouts of a market capt of $1 billion or more.
Dell shares were up 17 cents, or +1.20%, during pre-market trading on Tuesday. The stock is down -18.06% over the past year.
The Bottom Line
Shares of Dell (DELL) have a dividend yield of 2.26% based on last night’s closing price of $14.17 and the company’s annualized dividend payout of 32 cents per share.
Dell Inc. (DELL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.