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Blackstone pulls out from Dell buy out bid

Private equity firm Blackstone has pulled out from buy out bid of Dell, according to people familiar with the matter.

Blackstone sent a letter to the special board committee, who is in charge of the deal negotiations for Dell.

In the letter, Blackstone said the move to pull out of bid was due to declining personal computer (PC) sales, as well as with concerns about declines in Dell’s operating income.

Blackstone thanked Dell’s founder Michael Dell for his cooperation with the company.

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Earlier this month, Gartner reported that global PC shipments declined 11.2% to 79.2 million units in the first quarter of 2013, compared to the 89.1 million units shipped during corresponding period in 2012.

In February this year, Dell that it is going private, in a $24.4bn deal that will see its founder become the largest individual shareholder with a stake of 14%.

The other big investor is private equity firm Silver Lake, with which Michael Dell will pay $13.65 per share in cash for the world’s third biggest computer maker.

The buyout deal was opposed by the company’s shareholders Carl Icahn and Catherine Christne.

This article is from the CBROnline archive: some formatting and images may not be present.

CBR Staff Writer

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