In February, Dell announced plans to turn itself back into a privately run company via a $24 billion leveraged buyout, financed in part by a $2 billion cash investment from Microsoft. In March, the Blackstone Group gave a preliminary offer to Dell"s special committee that, in theory, could have been worth more than what Dell was willing to give to shareholders.
Today, the Blackstone Group announced it has withdrawn its offer to acquire Dell. In a press release, the investment group reprinted a letter sent to Dell, stating that a number of things have changed since the Blackstone Group launched its bid for Dell. The group cited the drop in overall PC shipments as one reason, along with the "rapidly eroding financial profile of Dell." The letter claimed Dell recently revised its projected income for the current year to $3.0 billion, down from $3.7 billion.
Dell still has a possible alternative bid to consider from billionaire Carl Icahn. This week, Icahn signed an agreement with Dell promising not to acquire more than 10 percent of Dell"s stock while the company gives his offer further consideration. Icahn"s offer would pay $15 a share in exchange for acquiring 58.1 percent of the company.
Source: Blackstone Group press release | Image via Dell