Dell Inc. (NASDAQ:DELL) could continue to be led by founder Michael Dell as CEO, even if the bid from The Blackstone Group L.P. (NYSE:BX) is accepted. The firm and activist investor Carl Icahn reportedly put in bids last week, and now a special committee of the company’s shareholders is looking the offers over.
Today The Wall Street Journal reports that Blackstone could ask Michael Dell to stay on as CEO, even though its competing bid for the struggling PC maker goes against Mr. Dell’s own leveraged buyout offer for the company. Mr. Dell is the largest shareholder of his company, and the firm sees Mr. Dell as being an asset for the company and a potential ally if its bid goes through.
The Blackstone Group L.P. (NYSE:BX)’s openness to keeping him on as CEO at Dell Inc. (NASDAQ:DELL) could sway him to vote for that offer. However, one of The Blackstone Group L.P. (NYSE:BX)’s proposals could cause Dell Inc. (NASDAQ:DELL)’s finance unit, which loans money to those who buy its products, to be sold. Mr. Dell is also opposed to that proposal.
At this point it isn’t known if Mr. Dell would be interested in staying on as CEO if Blackstone’s offer is the winning bid. Also The Wall Street Journal’s source said that the firm has also spoken with other executives at the company about possibly taking the helm. Mr. Dell was apparently not pleased when he heard about that.
The original leveraged buyout offer from Mr. Dell was for $13.65 per share and would take the company private. The Blackstone Group L.P. (NYSE:BX)’s offer was said to be at least $14.25 per share and would allow shareholders to keep some of their stock.