HP, Lenovo Sniffed Dell's Books During LBO 'Go-Shop' Period: Bloomberg


Dell's books may have gotten some in-depth reading by rivals Lenovo and Hewlett-Packard as part of Dell's so-called "go-shop" period while it looks for better offers in its quest to go private.

Bloomberg on Wednesday reported that Lenovo and HP, along with New York-based global investment and advisory firm Blackstone Group, have all taken advantage of the go-shop period to assess Dell's financial condition by examining that company's record books.

Dell, which is in the midst of a $24 billion-plus move to go private as a way to restructure itself to focus on becoming an enterprise solution provider away from Wall Street scrutiny, has had to open its books to potential suitors who might respond with offers more acceptable to Dell's existing investors.

[Related: Who's Who: The Key Stakeholders In Dell's $24.4B Deal To Go Private]

The go-shop period was scheduled to last 45 days from the original Feb. 5 announcement of the proposed leveraged buyout.

Many of those investors, including Dell's largest outside investor, Southeastern Asset Management, are questioning whether the existing $13.65-per-share leveraged buyout offer is in the best interests of Dell investors.

While Dell rivals HP and Lenovo have peered into Dell's financials during the go-shop period, the unnamed sources cited by Bloomberg said they do not expect competitive offers to invest in Dell.

HP, Lenovo, and Dell spokespeople told CRN their companies are declining to discuss the Bloomberg report.

PUBLISHED MARCH 6, 2013