Dell considering making itself Private
Roshan Ashraf Shaikh / 11 years ago
Bloomberg recently made a report stating that Dell is in buyout negotiations with two private companies. After this story was made public, Dell’s stock prices went up by more than 15%.
The company is already in contact with many banks to get financial assistance to make this transition.
Dell has been struggling for sometime now due to low profit margins. According to Gartner, Dell’s worldwide sales went down by 20% in the Q4 2012, losing ground to their competitors, HP and Lenovo. Their stock prices also lost a third of their value in the last year. As of now, Dell’s focus has shifted to providing enterprise products such as network and storage.
Since Michael Dell owns 15.7% of the company’s shares, the transition for making a deal with financial institutions and going private should be much easier.
Via: Techspot
