Blackstone Group LP (BX) is talking to several technology
companies about potentially joining its bid to take Dell Inc.
(DELL) private, people familiar with the matter said.
Any tech firm that joins the private-equity company's potential
bid for Dell would likely be involved in the computer maker's
strategic direction as well as having a financial role, the people
said. Blackstone has discussed a number of scenarios with
prospective partners, including an equity stake, debt financing or
a combination of the two, one of the people said.
The names of the technology companies Blackstone is soliciting
couldn't be learned.
Dell said its special committee of directors continues to
evaluate the alternative offers for the company, and Dell continues
to focus on its customers.
Blackstone can count on the backing of Dell's largest outside
shareholder, Southeastern Asset Management Inc., which currently
plans to roll its 8.4% stake into an offer from the firm, people
familiar with those plans said. Southeastern is a vocal opponent of
the deal Blackstone is trying to top, a leveraged buyout by
private-equity firm Silver Lake Partners and Dell founder Michael
Dell for $13.65 a share. Southeastern has said that offer, about a
25% premium to the share price before deal talks broke, undervalues
the company's shares and doesn't give current shareholders the
chance to participate in any Dell revival.
Blackstone's discussions with Southeastern and with potential
corporate partners show the firm is trying to assemble the pieces
to cement an offer for Dell. Last month, Blackstone told Dell it
was preparing to offer more than $14.25 a share for the company,
while allowing shareholders to retain some of their stock in a
portion of the company that would remain public.
Blackstone representatives are at Dell headquarters this week
conducting further due diligence, including meeting with
executives, people familiar with the matter have said.
The firm has had several discussions with Mr. Dell about having
him join their bid, but it remains unclear if the two will come to
an agreement on his stake and who would run the company in any
Blackstone-led deal, the people have said.
Activist investor Carl Icahn, who separately is pursuing the
Round Rock, Texas, company, has said he would review Blackstone's
offer and may attempt to join forces with the New York firm. Mr.
Icahn has said he is working on an offer to buy up to 58% of the
company for $15 a share.
By allowing existing shareholders to roll their stakes into a
deal, Blackstone would reduce the amount of money it needs to top
the Silver Lake offer, which includes the 16% stake held by Mr.
Dell and his affiliates, $750 million in cash from Mr. Dell and his
investment firm, and a $2 billion loan from Microsoft Corp.
(MSFT).
Southeastern and other investors, including Mr. Icahn, have
argued for a deal in which existing shareholders get the option to
roll at least part of their stake into any buyout, which a
Blackstone offer would allow.
Blackstone hasn't indicated how much of Dell's stock it would
leave in the hands of public Dell investors, and how much money
Blackstone aims to borrow.
It is unclear if Blackstone will decide to partner with a
technology company or who that company would be, the people
said.
Separately on Tuesday, Southeastern reiterated its opposition to
the Dell deal in a public letter to the Dell's board's special
committee that negotiated the Silver Lake deal. Southeastern said
Dell failed to make a convincing case in its proxy filing last
month the Silver Lake deal was the right move for shareholders.
Southeastern said it preferred proposals from Blackstone and Mr.
Icahn to Silver Lake because they offer shareholders the
opportunity to remain owners of Dell while also offering a higher
cash price to stockholders who choose to sell shares.
In a statement, the Dell special committee said members "remain
convinced that the risks and uncertainties of a stand-alone public
company are high and therefore continue to recommend a transaction
that provides shareholders with the certainty of a significant and
attractive cash premium."
David Benoit contributed to this article.
Write to Sharon Terlep and Shira Ovide at
sharon.terlep@dowjones.com and shira.ovide@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires