Dell Computer Receives more Bids for Takeover

Dell Inc, once the largest personal computer maker in the world, has received two more takeover bids that could be better than the original one received by Dell’s founder Michael Dell last month.

The two bids that will compete with last months’ bid are from Carl Icahn, the activist investor and from the private equity fund Blackstone Group. A committee consisting of board members at the computer company said the latest two bids could be superior to that of Michael Dell’s.

In February, Dell offered to pay $13.65 a share for the computer manufacturer that has struggled of late. His bid totaled $24.4 billion. This past week Dell said he would be open to exploring the possibility of working together with another group regarding the two other proposals given to Dell.

Icahn has offered a $5 billion equity commitment and said he has a large stake already in the company. Icahn is willing to buy $2 billion in shares of Dell for $15 per share and $2 billion in cash equity financing. All of this would be over and above the stake he already has in the computer maker.

Blackstone offered to purchase Dell by paying $14.25 per share. The equity firm also announced that those shareholders already holding Dell stock could remain with the company if they wanted to.

With more interest in the company from other bidders, it indicates the company might have a brighter future than some analysts or forecasters had originally thought. Nevertheless, the bids come at a time when the shipments of PCs are down and mobile devices such as tablets and smartphones have increased in popularity.

 

 

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