Dell is reportedly interested in accepting a management buyout offer at a price of $13 to $14 per share, which would put the purchase price of the company into a range of $22 to $25 billion.
According to the Wall Street Journal, Silver Lake Partners is leading the negotiations from the investor side and plans on borrowing up to $15 billion from banks to finance the deal. The report suggests that Dell founder Michael Dell will not be cashing in its share holdings, but use their current value of about $3.5 billion for a stake in the buyout. Silver Lake will need at least $2 billion from its own sources to purchase Dell.
The speculated reason for the buyout is the ability to take Dell private again and allow Michael Dell to restructure the company faster than it would be possible if the company is publicly traded and change is slowed down by the interests of other share holders. If the buyout happens, Dell could be seeing the most dramatic change in business and product strategy since its founding in 1984.