back to article More naysayers pour cold water on Dell LBO

Dell, the company, might want to be more like IBM, but this leveraged buyout takeover bid that Michael Dell and Silver Lake Partners have put together is starting to smell more like the Hewlett-Packard acquisition of beleaguered Compaq more than a decade ago. Southeastern Asset Management, which owns an 8.4 per cent stake in …

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This is likely all just noise to increase the bid.

But I have to wonder if Dell, the man, understands the deal he is making.

Rather than a bunch of random shareholders, which he can basically ignore, he will be directly controlled by people coming by each week for the vig. That means selling off whichever body part is worth money, right now. Wall Street isn't known for having a long term perspective, but raising private money usually comes with terms that are less about sharing risk and reward, and more about them owning it all if anything goes slightly wrong.

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I would assume

that Dell, the man, will be trying to ensure he has [control of] 50.01%+ of the shares after it goes private

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