According to CNBC, Dell is currently trying to get his business off the share market where it might fall further and has been negotiating with various vulture capitalists, such as Silver Lake Partners, to raise the cash.
Now it appears that Microsoft wants a slice of the action and is in talks with Silver Lake Partners and Dell’s CEO Michael Dell to invest $1 billion to $3 billion in a leveraged buyout of the PC maker.
If it did that, and so far Vole has been keeping its claws close to its chest, that would make it the biggest Dell shareholder. The idea would be that Vole would force Dell to use Microsoft’s Windows software to power the vast majority of its devices, so no change there. Vole wants preferred security in exchange for its investment.
That arrangement would give Microsoft a stock-ownership stake in Dell, but could carry some of the benefits of being a debt holder, such as ensuring Microsoft gets repaid before other stockholders if Dell were to go bust.
It had been expected that Vole would be writing such a cheque. Dell has been a close partner for a while and Vole needs to keep such chums close to it at the moment.
Talks between Silver Lake Partners, one of the main sponsors in talks with Dell to help bring it private, and the special committee for Dell’s shareholders are continuing and a deal is expected to be reached by the end of the week.