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By Catholic Online (NEWS CONSORTIUM)

2/5/2013 (1 year ago)

Catholic Online (www.catholic.org)

CEO Michael Dell seeks to revive former fortunes of Computer Company

Chief Executive Officer Michael Dell is taking Dell Inc. private for $24.4 billion. The decision is the biggest leveraged buyout since the financial crisis. It's hoped that the deal which let Dell revive the fortunes of his computer company without the scrutiny of Wall Street.

Chief Executive Officer Michael Dell is taking Dell Inc. private for $24.4 billion. The decision is the biggest leveraged buyout since the financial crisis.

Chief Executive Officer Michael Dell is taking Dell Inc. private for $24.4 billion. The decision is the biggest leveraged buyout since the financial crisis.

Article Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

2/5/2013 (1 year ago)

Published in Business & Economics

Keywords: Dell Computers, private, Wall Street, Michael dell, rivals


LOS ANGELES, CA (Catholic Online) - Announced this week, the deal will be financed with cash and equity from Michael Dell, as well as cash from private equity firm Silver Lake and a $2 billion loan from Microsoft Corporation. The recent decision will end a rocky 24-year run on public markets for a company conceived in a college dorm room.

Dell's decline in market share since its peak in the early 2000s has been seen as a sign from investors of the rapidly dwindling prospects of the personal computer industry.

As the world's No. 3 PC maker, Michael Dell began the company in 1984 as a computer-sales outfit while he was still a 19-year-old pre-med student at the University of Texas. Dell is now going through a painful transition from a pure PC maker to a one-stop provider of enterprise computing services. Sales of PCs still make up the majority of Dell's revenue.

The restructuring may entail job cuts at Dell and more costly acquisitions. The company must go on to do battle against more established rivals like Hewlett-Packard and IBM.

"We recognize this process will take more time," Chief Financial Officer Brian Gladden told Reuters. "We will have to make investments, and we will have to be patient to implement the strategy.

"And under a new private company structure, we will have time and flexibility to really pursue and realize the end-to-end solutions strategy."

Dell's strategy would "generally remain the same" after the deal closed, but "we won't have the scrutiny and limitations associated with operating as a public company."

Michael Dell and private equity firm Silver Lake are paying $13.65 per share in cash for the world's No. 3 computer maker. Wall Street acted positively, as shares of Dell were up 0.8 percent at $13.38 in morning trading.

Dell at onetime captivated the popular imagination with its rapid rise in the 1980s and 1990s. It's imaged has been tarnished as it ceded market share in recent years to such rivals such as Lenovo Group.

Michael Dell retook the company for five years following a brief hiatus during which its fortunes waned.

As of 2012's fourth quarter, Dell's share of the global PC market had fell to just above 10 percent from 12.5 percent a year earlier as its shipments dived 20 percent - the fastest quarterly pace of decline in years, according to research house IDC.

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Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for April 2014
Ecology and Justice:
That governments may foster the protection of creation and the just distribution of natural resources.
Hope for the Sick: That the Risen Lord may fill with hope the hearts of those who are being tested by pain and sickness.



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