Things are certainly getting interesting over at Dell (DELL). If you have been following the story, Michael Dell and private equity firm Silver Lake Partners attempted to take the world’s No. 3 PC maker private at $13.60. As soon as the deal was announced, Dell’s largest shareholder, Southeastern Asset Management, sent several letter to the board of directors stating that the offer clearly undervalues the company. Other large shareholders agreed and soon Carl Icahn joined the fight as he pushed the company to issue a $9 special dividend and threatened years of litigation. As Friday’s “go shop” deadline approached, rumors started swirling that BlackRock (BX) had contacted former Hewlett-Packard CEO and current Oracle (ORCL) executive Mark Hurd to run Dell. Now that the deadline has passed, we know who the players are, as both Carl Icahn and Blackstone turned in preliminary bids which the board of directors would have to contemplate.
According to Reuters, Carl Icahn is offering $15 per share in exchange for 58% of Dell, while Blackstone is offering $14.25 a share. Michael Dell and Silver Lake are offering $13.50. Shares of Dell (DELL) had been trading at a premium to the original offer in anticipation of a higher bid. It’s unclear when the special committee will make a decision, but this was clear from the outset that it wouldn’t be easy for Michael Dell to take Dell private.
If the higher offers do go through, the Gurus who stand to benefit include:
DG) are up after the discount retailer reported EPS of $0.97 for its latest quarter versus analyst estimates of $0.90. While revenues were in line with analyst estimates, the bottom line beat was helped by increased food sales. At the same time, the discount retailer raised its outlook for the coming year and now expects EPS between $3.15 to $3.30.
Gurus who either established a new position or added to their position in the discount retailer in the last quarter include:
- Daniel Loeb (New Buy, 1.7% impact to portfolio)
- Steve Mandel
- Eric Mindich
- Andreas Halvorsen (New Buy, 0.16% impact to portfolio)
- Joel Greenblatt (New Buy, 0.04% impact to portfolio)
- Pioneer Investments
Gurus who were bullish on Apollo and added to their positions include in the last quarter include:
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