Banks lined up on $24bn Dell buyout

TALKS to take struggling personal computer manufacturer Dell private are in an advanced stage, it emerged last night, with several large banks being tapped for funds to make a bid possible.

A bid led by US buyout firm Silver Lake Partners is being prepared with the blessing of Michael Dell, the company’s founder and chief executive. The deal could value Dell at as much as $24bn (£15bn).

The banks involved in financing the deal are Barclays, Bank of America Merrill Lynch, Royal Bank of Canada and Credit Suisse, with JP Morgan advisingā€ˆSilver Lake, it was reported last night. TPG Capital, a Texas-based private equity firm, is also believed to be investing, while Michael Dell, who owns a 15 per cent stake in the company, is contributing equity.

Shares in the company, which rose 13 per cent on Monday as talks of a buyout emerged, climbed seven per cent yesterday to $13.17. The deal’s value was estimated at between $13.50 and $14 a share.

Investors are believed to see Dell as a bargain buy with its current valuation historically low.

The parties did not comment.