Tin box shifter Michael Dell is rumoured to be putting his John Henry on a cheque for a billion dollars so that he can have total control of his company.
Rumours have been flying that Dell is planning a leveraged buyout of his own company with a few of his merchant banker chums and software giant Microsoft.
But Bloomberg News has found a deepthroat who has told it that Dell is planning to spend $1 billion out of his personal fortune to assume control of the world’s number three PC maker.
Michael Dell may contribute equity financing of $500 million to $1 billion. He currently owns 16 percent of Dell which is worth about $3.6 billion. Bloomberg said that his plan is to push his ownership above 50 percent and have majority control.
To do that he has help from private equity firm Silver Lake and Microsoft that would give $1 billion to $2 billion each toward an equity cheque of $8 billion to $9 billion, Bloomberg claimed.
Dell, the company, has had to form a special committee of its independent directors and has hired Evercore Partners to make sure if the company is getting the best deal for shareholders.
There are some concerns that Michael Dell might do well out of the deal, but other investors may not.