Blackstone and Icahn move on Dell

Silver Lake could face two competing bids for PC-maker Dell, with a Blackstone-led group proposing a $14.25 per share offer, and financier Carl Icahn proposing $15 per share.

The Blackstone Group and financier Carl Icahn have each submitted preliminary acquisition proposals for PC manufacturer Dell, to coincide with the end of the 45-day ‘go-shop’ period that began on 5 February. 

Both proposals “could reasonably be expected to result in superior proposals” in comparison to Silver Lake and Michael Dell’s offer of $13.65 per share, according to a statement. Dell’s special committee began soliciting alternative bids for the company following the bid from Silver Lake and Dell, which valued the business at $24.4 billion.

Blackstone is planning to bid alongside mid-market firm Francisco Partners and private equity and venture capital investor Insight Venture Partners. The group has proposed a bid of more than $14.25 per share.

“We believe there is significant upside in the Dell businesses, we see significant upside in the value of Dell’s shares, and our proposed transaction structure … will deliver significantly greater value to your shareholders than the value agreed to in the Merger Agreement,” Blackstone wrote in a letter to Dell’s special committee.

Icahn has offered $15 a share for roughly 58 percent of Dell. 

Both offers would involve a different transaction structure than that proposed under the Silver Lake deal. The Icahn offer would mean a portion of Dell would remain publicly-listed, allowing stockholders to retain their stake in the business.

The Blackstone deal also reportedly involves a public equity stub, although the details of how the bid would be financed have not yet been made public.

Silver Lake declined to comment. Blackstone did not reply to a request for comment.