“Real Stretch” for Dell Inc.(NASDAQ:DELL) to get enough funds - BBY
Northern, WI 1/17/2013 (avauncer) - According to Bill George, Harvard business School professor, funding will be a challenge for all the potential buyers of Dell Inc.(NASDAQ:DELL). The PC- maker is currently valued ay about $22billion and has $9billion in debts. These figures, according to Bill, will make it difficult for private companies to obtain funding even with the relatively cheap cost of money in the current economy. Bill says that putting funds together will be quite a stretch. The world’s third largest PC maker is looking at a buyout deal with private firms TPG Capital and Silver Lake. The value of the stocks of Dell Inc.(NASDAQ:DELL) has fallen by 43% in the last five years.
George provides the analogy of the efforts to privatize Best Buy Co., Inc. (NYSE:BBY). According to him, the same companies are involved in the buyout plans. Founder of Best Buy Co., Inc. (NYSE:BBY) has approached three equity firms for the deal according to sources. Due to lack of sufficient funding this takeover has slowed down since the time talks began initially.
Ever since the first buyout reported by Bloomberg, Dell Inc.(NASDAQ:DELL) shares have seen a significant 7.2 percent jump and have continued to grow up to 13%. Bill George, however, maintains that the buyout will be a slow process as obtaining funds is no easy task.
The shares of Best Buy Co. Inc. (NYSE:BBY) were up by 1.73% and closed at $14.67.
The shares of Dell Inc.(NASDAQ:DELL) were down by 4.25% and closed at $12.61