Comments on: Dell – Don’t be Greedy

By: tatilsever

tatilsever — Sat, 27 Apr 2013 00:04:13 +0000

Ah, my mistake… I should have netted current liabilities against current assets, not total assets. I missed that bankers don’t like getting paid by “goodwill”. Thanks…

By: windsorr

windsorr — Fri, 26 Apr 2013 12:24:54 +0000

Dell does not have net cash of 11bn. It has gross cash of 12.5bn. It has net cash of $3.7bn. a LOT of debt needs to be raised. Dont forget that this cash will not belong to the owners of the company until they have paid the $24bn – ichael Dell’s stake. With Silverlake’s billion or so it makes $9bn in debt that needs to be raised to get the sale done.

By: tatilsever

tatilsever — Thu, 25 Apr 2013 17:47:58 +0000

I agree that they may have to or want to sell, but $11 billion net cash in the bank, makes the debt load much less than the headline $19 billion, if the debt is raised from overseas banks. Oh, look, here comes Barclays, Credit Suisse and Deutsche Bank. 🙂

By: windsorr

windsorr — Thu, 25 Apr 2013 08:42:15 +0000

yes it does…Silver lake and co will have to raise a HUGE portion of debt to buy out the equity,,,its that that needs to be paid down by selling the PC business. Then they get the growing but for next to nothing!.

By: tatilsever

tatilsever — Tue, 23 Apr 2013 15:02:32 +0000

Does Dell really need to sell PC business for $19 billion? The company has $11 billion of net assets according to its last statement, in cash. Thus, the net debt load seems to be $8 billion only. Even with the big drop off in PC business, Dell brought $2 billion of profits last year, enough to pay off the interest payments on $8 billion, with some left over to make modest investments into services and software without taking on further debt. Alternatively, if it manages to sell its laptop/desktop business for about $8 billion, the buyout people will be owning the software, servers and services business free and clear. It is reasonable for the shareholders to haggle for a few billion more.