Dell Founder Said to Seek Majority Control Using Personal Funds

Michael Dell

Michael Dell is seeking majority control of Dell Inc. in a buyout that would combine his 15.7% stake in the company with as much as $1bn of his personal funds, said people familiar with the matter.

Bloomberg reports that Michael Dell may contribute equity financing of $500m to $1bn, said the people, who asked not to be identified because the talks are private.

Dell, the PC maker he founded in 1984, is nearing a buyout led by Silver Lake Management LLC, and Microsoft Corp. (MSFT) may provide part of the funding, people familiar with the situation have said.

Going private and pushing his ownership stake past 50% will enable CEO Dell to reposition the company amid shrinking PC sales and an industrywide shift to mobile and cloud computing without the scrutiny and stock fluctuations that come with being publicly traded.

By contributing his stake, worth about $3.6bin at Tuesday’s close, and another $500m to $1bn, Michael Dell would be putting up more than half of the total $8bn to $9bn equity check, with the remainder of the takeover financed by debt and possibly some of the $11bn billion of cash Dell reported it had as of September 30th. Silver Lake and Microsoft would invest $1bn to $2bn each, said the people with knowledge of the talks.

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Dell Founder Said to Seek Majority Control Using Personal Funds

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