How Would a Leveraged Buyout of Dell Work?

There is a good deal of skepticism around which way Dell Inc.’s (NASDAQ:DELL) leveraged buyout could go. While some think there’s just not enough to draw a buyer’s interest, others find potential reasons a buyout could be a good idea.

The situation

The PC market just hasn’t been the same since the advent of alternative computing technologies, particularly Apple’s (NASDAQ:AAPL) iPad. The shifting market dealt a heavy blow on Dell — the No. 3 computer maker — which lost 40 percent of its market value after a peak last year.

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The company is looking to make itself appealing to corporations to fill their technology needs, but the task would require some changes that could be difficult to complete under the watchful eyes of public investors. This has been suggested as one of the reasons Dell is seeking a leveraged buyout, as it would allow the company some privacy in its dealings and could facilitate acquisitions needed to turn the company in its desired direction…

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