Will Michael Dell Lose His Job?
In meetings with Blackstone executives, Dell said he would be more likely to support their proposal if he retained an influential role, a source familiar with the talks said. Negotiations are ongoing and the two sides may not reach an understanding. In February, Dell announced a $24.4 billion bid to take the company private again, a deal involving Silver Lake Management that has become increasingly less likely. Now, he is using his 15.6 percent stake in the company as leverage to keep his leadership role at the company, as the board weighs offers from both Blackstone and billionaire investor Carl Icahn, according to Bloomberg.
If another bid is superior and bars him from future involvement in the company, CEO Dell would cash in his shares and walk away, leaving the buyer to replace about $4.5 billion in financing he could have contributed, one of the sources said.
Reportedly, Blackstone initially assumed that Dell would not be participating in the buyouts. Silver Lake, which until a few days ago perceived Michael Dell as hostile to Blackstone’s proposal, now considers it possible that the CEO will drop out of their joint bid to back an alternative proposal, another person said. Dell has also not informed Silver Lake of his meetings with Blackstone.