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