* Temasek participation in Dell "not happening" - source
* Dell not a fit for Temasek's strategy - source
* Dell stock up 1.7 percent at $12.82
By Saeed Azhar
Jan 17 Singapore state investor Temasek Holdings
Pte Ltd is not interested in investing in Dell Inc
as part of a consortium led by private equity firm
Silver Lake Partners, a source with knowledge of the matter
"It's not happening," the source told Reuters on Thursday,
responding to media reports that Temasek is one of the potential
investment partners Silver Lake has tapped to join.
A Temasek spokesman declined to comment on market
Buyout firm Silver Lake Partners has tapped Credit Suisse
, Bank of America Merrill Lynch, Barclays
and RBC to finance a potential deal as talks to
take Dell private advance, sources have previously told Reuters.
A second source aware of Temasek's strategy said a company
like Dell does not fit into the firm's investment themes.
Temasek's four themes are Transforming Economies, Growing Middle
Income Populations, Deepening Comparative Advantages and
"If you look at the themes, whether it is the growing middle
income class or transforming economies, Dell is not an obvious
thing for (Temasek) to look at," the source said.
Of Temasek's S$198 billion ($162 billion) portfolio, about
70 percent of investments are in Asia.
A potential buyout of Dell -- a $19 billion company -- would
be one of the largest deals since the global recession. It will
also allow Dell, which has been trying to become a one-stop shop
for corporate technology needs as the PC market shrinks, to
conduct that difficult makeover away from public scrutiny.
Dell, which has been in talks with private equity firms on a
potential buyout, has had on-and-off discussions with the firms
but talks heated up late last year, sources have said.
A deal involves equity investment from billionaire CEO
Michael Dell, who owns 14 percent of the world's No. 3 PC maker,
a source with knowledge of the matter has said.
Dell, America's 22nd richest person according to Forbes, invests
and manages his fortune through MSD Capital.
Michael Dell now owns 244 million shares in the company,
according to Thomson Reuters data, and last year was ranked the
22nd richest American with a fortune of $14.6 billion.
Dell shares gained 1.7 percent on Thursday to $12.82.