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In this Thursday, March 26, 2009 file photo, Michael Dell, Chairman and CEO of Dell Inc., reacts to a question during a news conference in Beijing.
In this Thursday, March 26, 2009 file photo, Michael Dell, Chairman and CEO of Dell Inc., reacts to a question during a news conference in Beijing.
(Alexander F. Yuan/AP)

FINANCIAL TIMES

Private equity parks hope with shareholders, not Dell

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

Good news, Michael Dell. Your dogged attempts to talk down the prospects of your company seem to have worked. Just not in the way you intended. Rather than convince your fellow Dell Inc. shareholders to accept your buyout offer of $13.65 (U.S.) a share, you seem to have sowed doubts in the minds of your private equity co-investors at Silver Lake Partners. Silver Lake will reportedly not be heartbroken if the buyout falls apart. Fortunately, Mr. Dell, the only way that Silver Lake will not be ponying up the $1.4-billion in equity it signed up for is if Dell’s shareholders reject the offer on July 18.