Welcome!

@CloudExpo Authors: Yeshim Deniz, Jnan Dash, Liz McMillan, Zakia Bouachraoui, Janakiram MSV

Related Topics: @CloudExpo

@CloudExpo: Article

Dell Could Reportedly Go for $13.50-$14 a Share

Not the premium that most of the Street seems to be anticipating

Depending on who you listen to, Dell, once the world’s largest PC vendor fallen on hard times, could have a deal to go private through a leveraged management buy-out in place in the next six weeks (The Wall Street Journal) or in the next week or two (CNBC).

On the other hand, Toni Sacconaghi, the ace Sanford Bernstein analyst, thinks the whole exercise will come to naught because of the sheer size of the ~$22 billion-$25 billion deal, one of the biggest LBOs of all time.


The Dell presence on the show floor at recent Cloud Expos has been huge

Besides the size of the deal, he says, “you have a pretty risky environment in the sense that the PC marketplace is going through a lot of change right now.”

The last word out of CNBC Tuesday was that Dell could be taken out for $13.50-$14 a share, not the premium that most of the Street seems to be anticipating. The Wall Street Journal waded in later agreeing.

Silver Lake Partners is apparently the key private equity house Dell has been negotiating with for the last two or three months. The other name that has come up is TPG Capital.

The two might team to buy $2 billion in equity in Dell. Sacconaghi think it would take $4 billion.

There’s reportedly no formalized bidding group yet. A sovereign wealth or pension fund could get involved. The Wall Street Journal says JP Morgan Chase is managing “the deal process” apparently as an advisor.

According to CNBC the $15 billion debt financing is oversubscribed. Reuters says at least four major banks have been lined up by Silver Lake: Credit Suisse, Bank of America Merrill Lynch, Barclays and the Royal Bank of Canada.

Because of Michael Dell’s nearly 16% ownership position in the firm, worth maybe $3.6 billion, he’s assumed to be in. Because of that conflict of interest stockholders have no guarantee of getting the best price. He may be kicking in additional financing perhaps from his multibillion-dollar personal investment fund.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


CloudEXPO Stories
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, will discuss how to use Kubernetes to setup a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. His expertise is in automating deployment, management, and problem resolution in these environments, allowing his teams to run large transactional applications with high availability and the speed the consumer demands.
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throughout enterprises of all sizes.
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the benefits of the cloud without losing performance as containers become the new paradigm.
As you know, enterprise IT conversation over the past year have often centered upon the open-source Kubernetes container orchestration system. In fact, Kubernetes has emerged as the key technology -- and even primary platform -- of cloud migrations for a wide variety of organizations. Kubernetes is critical to forward-looking enterprises that continue to push their IT infrastructures toward maximum functionality, scalability, and flexibility.
Because Linkerd is a transparent proxy that runs alongside your application, there are no code changes required. It even comes with Prometheus to store the metrics for you and pre-built Grafana dashboards to show exactly what is important for your services - success rate, latency, and throughput. In this session, we'll explain what Linkerd provides for you, demo the installation of Linkerd on Kubernetes and debug a real world problem. We will also dig into what functionality you can build on top of the tools provided by Linkerd such as alerting and autoscaling.