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UKModelshops Fans Comment on Michael Dell's Decision to Buy Back His Own PC Company

Michael Dell, the man behind one of the largest PC companies in the world, has announced his intention to purchase the rest of the business

 
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London, UK -- (SBWIRE) -- 02/08/2013 -- With the help of Microsoft and Silver Lake, the latter being a private equity firm in the US, Michael Dell intends to purchase the rest of his own PC company. Tech fanatics on the UK Models Facebook page have said that each investor will get $13.65 for every share they own. The decision to buy back shares came as the result of the near-constant struggle the company has faced in recent years, as more and more consumers have replaced their traditional PCs with tablets.

According to UK Models female tech fans, the deal will allow Michael Dell, who currently owns just sixteen percent of the company, to regain close to total ownership of it. One of the world’s biggest PC software producers, Microsoft, will be contributing two billion dollars to purchase, but the acquisition also relies heavily on extremely large loans from banks. To date, it is the largest leveraged buyout undertaken by a company since the international financial crisis.

By going private, the company – which in recent years, has been attempting to become a corporate technology ‘one stop shop’ – will be able to revamp itself, away from the public eye. This ‘makeover’, fans of UK Models agency say, is essential if Dell is to keep up with its competitors. Last year it saw a significant decline in sales of its PCs, with operating profits falling by nearly fifty percent, and revenues dropping by eleven; this is the biggest decline experienced by Dell in over twelve years.

The deal was set in motion following Michael Dell’s first meeting with the board of directors in late summer of 2012, after which a special committee was established. The committee includes the well known legal and financial advisors Debvoise & Plimpton LLP and JP Morgan, both of whom will be offering advice regarding the proposal and agreement for the acquisition. The next stage in the process will be the merger entering what is called a ‘go shop’ period; according to UK Modelsport fans, this is when the committee will be sent alternative proposals from other interested parties; these will be evaluated and there is the possibility that negotiations will begin with these parties, should their proposals pique the interest of the committee.

This go-shop period is to continue for the next forty five days; once it has ended, users of Ukmodelshops say, the committee will then begin to enter into more formal discussions with the parties they have selected. This bidding process will not come cheaply – successful bidders who submit proposals during this 45 day stretch will incur a termination fee of $180 million, whilst unsuccessful bidders fees will stand at $450million.

Media Contact:
Company: UKmodelshop
Website: http://www.ukmodels.org.uk
Location: London
Contact: Paul Jerome / pauljerome6@gmail.com