DELL Dell Buyout Deal Details

The just announced Dell takeover by Michael Dell and Silver Lake Partners is valued at $24.4B or $13.65 per share.  Dell closed yesterday at $13.27 so this would be a premium of only 3%.

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Headlines:

• DELL: Dell in $24.4B founder-led deal to go private - AP
• DELL: Dell Confirms Plan To Go Private in $24.4 Billion Buyout Deal - at AllThingsD
• DELL: Dell to go private in $24.4 bln deal - at Reuters
• DELL: Dell takeover by Michael Dell, Silver Lake valued at $24.4B or $13.65 per share -

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• Michael Dell to continue as chairman CEO
• Agreement has a 45 day "go shop" period.
• The deal will be financed by Michael Dell and funds associated with Silver Lake

I'll add more as it comes in.

Press Release: Dell Enters into Agreement to Be Acquired by Michael Dell and Silver Lake

Dell stockholders to receive $13.65 per share in cash...

The price represents a premium of 25 percent over Dells closing share price of $10.88 on Jan. 11, 2013, the last trading day before rumors of a possible going-private transaction were first published; a premium of approximately 35 percent over Dells enterprise value as of Jan. 11, 2013; and a premium of approximately 37 percent over the average closing share price during the previous 90 calendar days ending Jan. 11, 2013. The buyers will acquire for cash all of the outstanding shares of Dell not held by Mr. Dell and certain other members of management.

and 45 days to look for a better deal:

The merger agreement provides for a so-called “go-shop” period, during which the Special Committee – with the assistance of Evercore Partners – will actively solicit, receive, evaluate and potentially enter into negotiations with parties that offer alternative proposals. The initial go-shop period is 45 days. Following that period, the Special Committee will be permitted to continue discussions and enter into or recommend a transaction with any person or group that submitted a qualifying proposal during the 45-day period. A successful competing bidder who makes a qualifying proposal during the initial go-shop period would bear a $180 million (less than 1 percent) termination fee. For a competing bidder who did not qualify during the initial go-shop period, the termination fee would be $450 million. 

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