By Lindsay Hochberg

Dell has been in talks with private equity firms for several months now, with hopes of taking the company private.  On February 5^th of this year, Michael Dell announced that he and private equity firm Silver Lake Partners would take the ailing computer giant private, for $13.65 dollars per share, for a total of 23 billion dollars. The terms of the agreement included a “go shop” period; during this time, Dell was able to look into other potential buyers. When the news first came out, many stockholders were dismayed with the buyout of shares for $13.65, and they argued that the stock was undervalued. Several investment firms that hold large positions in Dell publicly expressed their disappointment, one of which is Southeastern Asset Management, and now Dell’s deal is becoming more complicated as new potential buyers are placing their bids, and the company’s stock is currently trading $13.65.

Blackstone Group is considering placing a bid for the company. Dell, which was once a leader in the computer industry, in the last decade has taken a backseat to fast-growing Apple. Yet, the company has great potential to revitalize itself with the help of a buyout. Microsoft would provide 2 billion dollars in funding for the deal in loans; on the conditions that Dell continues to make products that support Windows devices. Angelo Zino, of Standard and Poors, said that if Blackstone places a bid on the company than, “it could lead to a bid as high as $15 a share.”

This past Monday, preliminary bids from Blackstone and independent investor Carl Ichan helped facilitate the stock’s 3.2% gain, pushing the stock price 6.9% higher than what Silver Lake had agreed upon. Michael Dell, CEO and founder of Dell, is in the process of deciding which deal is best for him and the future of the company. It is unclear if a buyout by Blackstone or Carl Ichan would result in Dell being replaced by a new CEO. This possibility is also weighing on Dell’s ultimate decision. Time will tell how Dell and its shareholders were fair as a result of the buyout process.

Sources :http://www.businessweek.com/news/2013-03-18/blackstone-said-to-mull-outbidding-silver-lake-in-dell-lbo-offerhttp://blogs.wsj.com/cio/2013/03/25/cios-brace-for-dells-lbo/http://online.wsj.com/article/SB10001424127887323501004578386593802808294.html