Falling PC sales knock investor out of race for Dell

Investment group Blackstone is reportedly no longer seeking to buy Dell, likely leaving it in the hands of Michael Dell

Stewart Mitchell
19 Apr 2013

Investment group Blackstone has pulled out of the hunt to buy Dell, leaving Michael Dell and the Silver Lake consortium in prime position.

The private equity company got cold feet over falling PC sales and Dell's operating income, according to sources cited in a Wall Street Journal report.

Neither Blackstone nor Dell commented in the story, but the withdrawal would leave a $24.4 billion bid from Michael Dell and Silver Lake Partners – a consortium that includes Microsoft to the tune of $2 billion – as prime contender.

Investor Carl Icahn has also expressed an interest Dell, so the Silver Lake bid is not guaranteed to win the PC maker.

According to the sources cited by the WSJ, Blackstone had been studying the books and the review "raised doubts about the future of Dell's PC business".

Although Dell's board had been hoping the additional interest could force a higher price from either Silver Lake or one of the rival players, recent figures from IDC showing a 14% drop in PC sales appear to have made the sector less attractive.

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