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
TheStreet Open House

The Deal: Dell's Deal Done at $25B After Months of Conflict

Stocks in this article: DELL

NEW YORK ( The Deal) -- Shareholders on Thursday approved private equity firm Silver Lake and founder Michael Dell's LBO of his eponymous Texas PC maker. Dell (DELL) will soon go private, for about $25 billion, after about 25 years on the public markets.

"I am pleased with this outcome and am energized to continue building Dell into the industry's leading provider of scalable, end-to-end technology solutions," said Michael Dell, chairman and CEO of Dell, in a statement. "As a private enterprise, with a strong private-equity partner, we'll serve our customers with a single-minded purpose and drive the innovations that will help them achieve their goals."

A statement from the company said the deal's total value, including the $13.75 share price and special dividend of 13 cents a share, is $24.9 billion.

The deal's likely success solidified Monday, when activist investor Carl Icahn bowed out of the bidding for Dell, acknowledging it would be nearly "impossible" for him to win, he said earlier in the week.

The company has been shopping a $5.5 billion loan for the transaction, which sources said is "covenant-lite" and anticipated to complete in October. Even in spite of the length of time it took to complete the transaction, it appears as if Dell and Silver Lake were capable of accessing capital at a low rate and on friendly terms, in advance of any decision by the Federal Reserve to taper its asset buying, which could impact the debt markets.

The deal has been on hold for months as Icahn, joined by investment firm Southeastern Asset Managemennt Inc., and the founder-sponsor team sparred with one another, issuing rhetoric about whether or not the company could succeed as a public entity.

Icahn, however, achieved one thing, the original $13.65 per share price was nudged up to its present value.

And there is a possiblity the deal price could go higher slightly higher. Despite Icahn bowing out of a control deal for Dell, in which he sought to complete a leveraged recapitalization that would have left a portion of the company as a public entity, the investor continues to pursue a court-mandated appraisal of Dell's stock.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,524.10 +124.43 0.76%
S&P 500 1,927.88 +23.87 1.25%
NASDAQ 4,385.4510 +69.3770 1.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs