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Sponsor Silver Lake emerges as front runner to acquire Dell

Led by US private equity group Silver Lake Partners, talks over the potential buy-out of US computer manufacturer Dell Inc (NASDAQ:DELL) have reached the advanced stage and at least four leading banks have been approached to arrange financing for the deal, Reuters reported.

Citing two sources familiar with the matter, the news agency said that Silver Lake had lined up Credit Suisse Group AG (VTX:CSGN), Bank of America Merrill Lynch , Barclays Plc (LON:BARC) and RBC Capital Markets LLC as funding agents. Michael Dell, the founder and chief executive of Dell, is expected to make an equity investment as part of the deal. An agreement could emerge presently but the situation remains fluid, the sources added.

Dell has chosen JPMorgan Chase & Co (NYSE:JPM) to advise it on a transaction that could rank among the biggest to take place since the global recession struck. According to the article, Dell is worth about USD19bn (EUR14.3bn).

Reuters went on to add that becoming a privately held company would allow Dell to proceed with its makeover without being subjected to public scrutiny. With the PC market progressively dwindling, Dell is looking to transform itself into an all-round provider of enterprise technology solutions.

Dell and the banks identified by the sources would not comment for Reuters, while calls to JPMorgan and Silver Lake were not immediately returned.


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