Michael Dell return to the stock market after a long battle

Michael Dell, the PC pioneer, made his return to the stock market yesterday after a years-long battle with investors, as Wall Street put a value of $34 billion on newly traded shares in his company. The listing on the New York Stock Exchange ended five years of private ownership during which Mr Dell and private equity partner Silver Lake used financial engineering, dealmaking and heavy borrowing to overhaul the PC maker. That included buying the data storage company EMC for $67 billion and amassing more than $50 billion in debt. But Dell’s decision to return to the market and buy out shareholders in an existing stock, rather than carry out a traditional IPO, triggered a brutal fight with investors over price. Mr Dell estimated that his complex cash and shares offer would be worth $23.9 billion to the owners of DVMT, an unusual class of tracking stock Dell had created to help pay for EMC. In the end, Dell shares began trading at $46, implying a lower buyout value of $20.9 billion… Mr Dell turned his back on Wall Street in 2013 with a $24 billion buyout of the company he had founded while a student at the University of Texas nearly 30 years before… The extensive dealmaking has left Mr Dell in control of a greatly enlarged tech empire.

Richard Waters