| NEW YORK
NEW YORK Feb 1 Dell Inc is nearing an
agreement to sell itself to a buyout consortium led by its
founder and Chief Executive Michael Dell and private equity firm
Silver Lake Partners, possibly announcing a deal as soon as
Monday, according to two people familiar with the matter.
Michael Dell is expected to take majority ownership of the
world's third-largest personal computer maker, which currently
has a market value of $23 billion, while Silver Lake and
Microsoft Corp would become minority investors, a third
person familiar with the matter said.
The final price the group is expected to pay Dell
shareholders could not be immediately learned. The deal would
mark the largest leveraged buyout since the global financial
The transaction is set to be finalized over the weekend but
the buyout consortium is working on last-minute details and the
timetable could still slip, the people cautioned, asking not to
be named because the matter is not public.
The investment group, which held negotiations with Dell's
camp in New York on Thursday, has secured up to $15 billion of
debt financing to take Dell private from four investment banks
-- Barclays, Bank of America Merrill Lynch,
Credit Suisse and RBC Capital, people familiar
with the matter said.
Barclays is also advising Silver Lake on the transaction,
along with Perella Weinberg Partners, said two of the people.
JPMorgan Chase & Co is advising Dell.
Representatives for Dell, Microsoft and Barclays declined to
comment. Silver Lake and Perella Weinberg could not be
immediately reached for comment.
As part of the transaction, Michael Dell will contribute his
existing stake of almost 16 percent in the company toward
gaining majority ownership, sources close to the matter have
Going private would allow Dell, which has been trying to
become a one-stop shop for corporate technology needs as the PC
market shrinks, to conduct that difficult makeover away from
Dell has formed a special committee of its independent
directors and hired Evercore Partners Inc 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,
several people familiar with the matter have told Reuters