Dell 'is in buyout talks' with private equity firms
Published 15/01/2013 | 05:00
DELL is in buyout talks with private-equity firms, it was reported last night.
The company is in preliminary talks about going private with at least two firms. Several large banks have been contacted about financing an offer. The computer maker had a market value of $18.9bn (€14.1bn) as of January 11.
Shares in the Texas-based company jumped after Bloomberg reported the talks, climbing 12pc by the close in New York. The company declined to comment.
News of the potential buyout came as the Irish arm of the company outlined its plans for 2013.
Dell Ireland head Dermot O'Connell yesterday spoke at the company's presentation on the year ahead for the computing sector.
The company believes firms will continue to focus on IT security, cloud computing and virtualisation, which allows a user to run software "virtually" on different machines.
"Customers remain focused on cost management and mitigation in addition to investing in new solutions," said Mr O'Connell.
"While budgets remain under pressure, the understanding of the role that IT can play in helping to address customer challenges has continued to grow," he added.
Microsoft's Windows 8 operating system has posted lacklustre sales since it was launched last year, but Mr O'Connell said that was due more to a lack of preparation on the supply side of the business rather than a poor product.
"There were a couple of issues and I don't think we were ready as an industry for the demand that we saw.
"There had been a lot of testing of Windows 8 on the business side but maybe not so much on the consumer side so the market may not have been as ready as it should have been.
"The other issue was that a lot of people had upgraded from Windows XP to Windows 7. When you put those two systems side by side, the extra features on Windows 7 are pretty obvious. That's not necessarily the case with Windows 8," Mr O'Connell claimed.
Meanwhile the era of companies handing out BlackBerrys and other smartphones to every employee may have gone, but firms are still trying to retain maximum control over how employees use work information, according to Dell.
In recent years, employees have begun using their own iPhones and iPads for work and have demanded their employers support their devices. This has saved money for companies but raised questions about data security.
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