Dell's founder and chief executive may pay as much as $US1 billion out of his personal fortune to assume control of the world's No. 3 PC maker in a leveraged buyout, Bloomberg News reported today.
Michael Dell may contribute equity financing of $US500 million to $US1 billion in addition to his approximately 16 percent stake in Dell, worth about $US3.6 billion, to push his ownership above 50 percent and have majority control, Bloomberg said.
Michael Dell's partners — private equity firm Silver Lake and giant software company Microsoft ‚ would contribute $US1 billion to $US2 billion each toward an equity check of $US8 billion to $US9 billion, Bloomberg said.
Details of the equity financing were still being finalised while making sure Dell has explored all possible alternative options, including a sale to other buyers, Bloomberg said.
Representatives of Dell, Silver Lake and Microsoft did not immediately respond to requests for a comment.
Dell has reportedly formed a special committee of its independent directors and has hired Evercore Partners to assess whether the company is getting the best deal for shareholders and not one that is just in the best interest of Michael Dell.
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