Bloomberg is reporting that Michael Dell, founder of the eponymous computer company, is seeking to take majority control of the firm using his own cash. He currently holds a 15.7 per cent stake—and will need to stump up as much as $1 billion of his personal funds to seize 50 per cent.
The report comes on the heels of reports that suggested Dell was planning to take the company private, in turn taking it off the stock market. This new Bloomberg adds weight to that speculation, suggesting that Michael Dell seeks ultimate control.
Bloomberg cites "people familiar with the matter" who claim that Michael Dell is prepared to contribute equity financing of $500 million to $1 billion to make the share buyout happen. If he manages to achieve that, he'll be able to take Dell in whatever direction he chooses—free from the scrutiny and stock fluctuations that make being publicly traded such a pain in the ass. Who knows: we might see a little more innovation from Dell if it goes private. [Bloomerg]