Microsoft joins talks to invest in Dell: report

Last updated 10:24 23/01/2013

Relevant offers

World

Domino's Japan drops reindeer delivery Ivanka Trump's China-sewn line turns profit at a political cost Mark Forbes, editor-in-chief of The Age, stood down Starbucks CEO Howard Schultz to step down Nestle claims it can slash sugar in its chocolate bars by 40 per cent Blowing Bubbles: That time when house prices fell 75 percentage points in Dublin Australian man turns off Telstra's 2G network, says goodbye to his 13-year-old Nokia Ever wondered why McDonald's chicken nuggets are shaped the way they are? A Bunnings shoplifting romance: Love-struck tradie forgets to pay for $3 battery, still gets girl Scammers shave regular kittens and sell them as hairless Sphynx cats

Microsoft is in discussions to invest between US$1 billion ($1.2 billion) and US$3b of mezzanine financing in a buyout of Dell, CNBC cited unidentified sources as saying on Tuesday.

Private equity outfit Silver Lake Partners is trying to finalise a bidding group to take the world's No 3 PC maker private, and has opened discussions with potential equity partners, sources familiar with the matter have said.

Dell also has formed a special committee to take a close look at any potential deal on the table, multiple sources with knowledge of the matter told Reuters. If successful, it would be one of the largest corporate buyouts since before the global financial crisis.

Microsoft, which accelerated its foray into computer hardware in 2012 with the launch of the Surface tablet, will provide the capital in the form of mezzanine financing according to CNBC, which is a hybrid of debt and equity.

Microsoft and Dell both declined to comment on the CNBC report. Shares in Dell gained climbed 2 per cent to US$13.08 in late morning trade.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content