The road to privatisation was never going to be an easy one. Michael Dell was going to face a slew of investors wanting top dollar for an under ,,performing company, even if he didn't have other bidders.
Dell intended to pay $24bn for the company he's run since day one. That price just got raised by two other investors with deeper pockets. Blackstone and Carl Ichan have the potential to offer better packages for investors by way of a public equity stub, a way to keep them invested while being a private company.
Following the offers, Michael Dell and his investment group will most likely have to up their bid for Dell. They'll also need to offer a stub, which is something they don't want to do.
Nothing quite worked out like it was suppose to. Dell investors were suppose to take their measly $24bn, so Michael Dell could ride off into the sunset and get his company right. That hasn't yet happened.
Instead, the infighting and business politics have won out. Investors want to get paid and don't care about Dell's future strategies. Yet, despite not caring some investors still want a piece of Dell's future.
One theory is that Dell won't be private forever. Once Dell gets its business in order it's possible that the firm will reopen to Wall Street. Current investors know this and they don't want to be left out in the cold when it happens.
They want to hitch their dollars to the private Dell and let things shake out as they may. They could do it with Michael Dell, Carl Ichan, or Blackstone. It doesn't really matter to investors who has the company, just that they have a piece of the action.
It's the type of motivation that Michael Dell was hoping to avoid by going private. Dell had hoped to get his company doing things that were good for the company. He wanted a brief reprieve from quarterly progress reports so he could allow his company to play the long game.
Unfortunately, for Dell that seems unlikely. With the stub that's expected to be included in any deal for the company, a truly private Dell seems out of reach.
Dell was aiming to go private and turn itself into an enterprise solutions powerhouse. The company knows their options in the PC market are inconsequential and it wanted to get prepped for the future by removing quarter-obsessed investors.
Now, instead of a private Dell, the company will have to answer to some sort of investor. Whether a private or public one.
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