This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dell, HP Bondholders Could Feel Buyout Pain

Currently, Bloomberg reports Michael Dell may look to take control of Dell by rolling an equity stake in the company worth nearly $4 billion, a further investment of up to $1 billion, and between $1 billion to $2 billion in equity from Silver Lake and Microsoft.

The total equity of the deal, Bloomberg reports, would be between $8 billion and $9 billion, indicating that a similar amount of debt would be needed to take the company over, given Dell's current market cap of $23 billion.

While some analysts have puzzled over how a takeover consortium might be able to raise such financing, Moody's analysis may indicate options for investors, in addition to a still unclear ability to repatriate the near $14 billion in cash and cash equivalents that currently sit on Dell's books.

For more on Moody's analysis, see the agency's ratings report. Also see why prospective takeovers of Dell and Best Buy pose risks for stock investors.

-- Written by Antoine Gara in New York
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
CSC $64.99 -0.08%
HPQ $30.62 1.06%
XRX $10.77 0.09%
AAPL $122.37 -0.50%

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 +0.06 0.00%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs