Blackstone’s Dell Bid Sets Stage for Bidding War

Offers from Blackstone and Icahn rival the bid from Michael Dell and Silver Lake.

Blackstone Group LP’s preliminary bid to take over Dell Inc. is setting the stage for a rare event: a bidding war between private-equity firms.

Blackstone, the world’s biggest buyout firm, and activist investor Carl Icahn made separate offers last week that rival a $24.4 billion bid for the computer maker by Dell founder Michael Dell and Silver Lake Management LLC, according to a statement today from Dell. The shares rose 3.2 percent to $14.59 at 9:31 a.m. in New York, 6.9 percent above the Silver Lake offer.

Go Shop

Earlier this month a judge narrowed the basis on which the case could proceed, while rejecting a defense request to throw it out.

Icahn’s Offer

The group is bidding more than $14.25 a share, the computer maker said in today’s statement. Blackstone is proposing a leveraged recapitalization transaction, in which investors could choose to get either all cash or equity, subject to a cap, if they want to stay invested in Dell. The shares would continue to be publicly traded.

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