With three suitors now in the mix for Dell Inc., it can be a little tough remembering who’s offering what and who’s working with whom. We’re here to help.
Here’s a breakdown of what each of the bidding groups â€" Michael S. Dell and Silver Lake; the Blackstone Group; and Carl C. Icahn â€" is proposing and who’s helping put the plans together. But it’s also worth noting that they aren’t completely alike: Mr. Dell and Silver Lake plan on taking completely control of Dell, while Blackstone and Mr. Icahn are each contemplating leaving some portion of the company in public shareholders hands.
Michael Dell and Silver Lake- Offering to pay $13.65 a share for all of Dell.
- Lined up a $2 billion loan from Microsoft.
- Mr. Dell has committed to contributing his roughly 16 percent stake and an additional $750 million.
- Silver Lake is providing $1.4 billion in equity capital.
- The group is being advised (and financed) by a bevy of banks: Bank of America, Barclays, Credit Suisse, the Royal Bank of Canada and now Citigroup as well. Mirosoft was advised by Lazard.
- Mr. Dell is being counseled by Wachtell, Lipton, Rosen & Katz, and Silver Lake by Simpson Thacher & Bartlett.
- Working with Francisco Partners and Insight Venture Partners.
- Proposing paying over $14.25 a share.
- Investors who want to maintain a stake in Dell can do so, though Blackstone hasn’t specified what percentage of the company will remain public.
- Has a “highly confident†letter of financing from Morgan Stanley, though it doesn’t yet have a committed loan and bond package.
- Its deal team is being led by Chinh E. Chu, the co-chair of the firm’s private equity committee, and David Johnson, the former senior vice president of corporate strategy at Dell.
- Has held discussions with “some of Dell’s largest shareholders,†which people briefed on the matter said includes Southeastern Asset Management, the biggest outside investor in the computer company and a vocal critic of Mr. Dell’s offer.
- Working with Morgan Stanley and the law firm Kirkland & Ellis.
- Owns 80 million shares, which he values around $1 billion and would contribute toward a deal.
- Would buy about 58.1 percent of Dell, leaving the rest publicly traded.
- Would pay $1 billion from Icahn Enterprises, his main investment vehicle, and would kick in an additional $3 billion from other sources of equity capital.
- Would make use of $7.4 billion of cash on hand at Dell, as well as borrowing $1.7 billion against receivables and $5.2 billion in new debt.
- Working with the Jefferies Group.
- The special board committee reviewing the three takeover offers is working with JPMorgan Chase, Evercore Partners and the law firm Debevoise & Plimpton.
- The company itself is being advised by Goldman Sachs and Hogan Lovells.
- Southeastern has retained the law firm Greenberg Traurig and the proxy solicitor D.F. King.
