NEW YORK, April 28 Dell shareholders could still
stand to profit even after Blackstone Group LP withdrew
its bid to buy the world's No. 3 personal computer maker more
than a week ago, Barron's said on Sunday.
On April 19, Blackstone's move knocked Dell shares to a
two-month low and narrowed the fight for Dell between activist
investor Carl Icahn and the company's founder Michael Dell and
Silver Lake Partners, the newspaper said.
Blackstone dropped its bid for Dell at $14.25 a share,
citing deteriorating demand for PCs.
On Friday, Dell's stock closed at $13.35, below the
$13.65-a-share proposed buyout from its founder and Silver Lake.
"Dell shares now look appealing because investors stand to
make a small profit if the Michael Dell-led offer gets
approved," the paper said in its April 29 edition.
Icahn and Southeastern Asset Management, Dell's largest
independent shareholder that complained the buyout offer being
too low, have valued the company at more than $20 a share,
Icahn proposed in early March, about a month after the
Dell/Silver Lake's announced its bid, for a $9-a-share special
dividend. He has not made a formal offer for Dell, which
Barron's said could involve a tender of 58 percent of the PC
marker's stock at $15 per share.
If a Icahn offer does not emerge, Wall Street analysts
reckon Dell might fall as low as $10 a share, the paper said.
The planned buyout, which has angered Southeastern and other
major investors, faces a tough shot of being approved, excluding
its founder who owns 16 percent of the company, according to the
If Dell/Silver Lake bid fails, it will be "welcome news for
Dell investors, who could then benefit from alternatives that
offer immediate and long-term benefits that probably far exceed
$13.65 a share," Barron's said.