Private-equity firm Blackstone has reportedly backed-out of its planned $25 billion bid for Dell.
Blackstone initially placed the $24.4 billion bid in order to compete with the planned take over of Dell by founder Michael Dell, who sought to take the firm private with a similar bid of $13.65 per share. Dell currently owns a 14 per cent take in the firm’s common shares and planned to take the firm private through private equity firm Silver Lake.
In addition to Blackstone, activist investor Carl Icahn also matched the original bid madder by Dell.
However, circulating reports indicate Blackstone has since withdrawn its offer.
Whilst official word detailing the withdrawal has yet to be given, circulating rumours indicate the firm grew hesitant over the deal following a look at the company’s financials, and a potentially disappointing earnings outlook.
Michael Dell has said he would support the buyout by Blackstone, only if he remained as the company’s CEO.
The deal by Blackstone would have effectively left shareholders with a choice to either sell their shares or remain a part of the firm – with those opting to cash-in receiving $14.25 per share.