Michael Dell may need to increase a $24.4 billion offer to buy out one of the largest employers in Central Texas. That’s after two new acquisition offers emerged today for Round Rock-based Dell.
The offers from private equity firm Blackstone and billionaire investor Carl Icahn both value the company at more than $13.65 a share, which is the offer from Michael Dell and Silver Lake Partners.
"I think the board, if it’s going to be objective, has to reject Michael’s offer and accept one of the two offers, and then give Michael a chance to come back and see if he wants to match it," said John Doggett, a senior lecturer at the University of Texas McCombs School of Business. "This is looking like either he’s going to have to pay a lot more money or he might actually be forced out of his company.”
Or there's another possibility. Michael Dell might partner with one of those offering a higher offer.
"I could see Dell and Silver Lake going in with Blackstone," said Jim Nolen, another professor at the McCombs School. "But it still doesn't accomplish getting out of the public eye. If you have any shares open, you still have to do [Securities and Exchange Commission] reporting."
Any deal would be subject to shareholder approval. Dell employs about 14,000 people in the Austin area.