 "Michael Dell to 'consider' Blackstone LBO only with CEO guarantee")
Dell Inc founder Michael Dell will only consider backing a buyout by Blackstone Group LP if the private-equity firm guarantees he can remain as CEO, according to a person familiar with the discussions.
In several recent meetings in Austin, Texas, with Chinh Chu and David Johnson - the Blackstone executives overseeing the firm's bid - Michael Dell said he would be more likely to support their proposal if he retained an influential role, a second person familiar with the talks said. Negotiations are ongoing and the two sides may not reach an understanding.
Michael Dell said on February 5 that he agreed to take his company private in a $24.4-billion transaction with Silver Lake Management LLC. He's now using his 15.6 per cent stake as leverage to preserve his leadership position as the company weighs competing offers from Blackstone and billionaire investor Carl Icahn, said one of the people.
In several recent meetings in Austin, Texas, with Chinh Chu and David Johnson - the Blackstone executives overseeing the firm's bid - Michael Dell said he would be more likely to support their proposal if he retained an influential role, a second person familiar with the talks said. Negotiations are ongoing and the two sides may not reach an understanding.
Michael Dell said on February 5 that he agreed to take his company private in a $24.4-billion transaction with Silver Lake Management LLC. He's now using his 15.6 per cent stake as leverage to preserve his leadership position as the company weighs competing offers from Blackstone and billionaire investor Carl Icahn, said one of the people.