Irish Life poised to benefit from €18bn Dell takeoverAUDACIOUS: Michael Dell
Published 10/02/2013 | 04:00
STATE-owned Irish Life's investment arm ILIM will be one of the major earners in Michael Dell's audacious €18bn bid to take over Dell Computers, the company that bears his name.
Regulatory filings show that IILM holds a €30m stake in FDell, having actively gone to the market to up its shareholding last summer.
Recent filings show that some of Dell's top Irish executives could make a fortune from the buyout.
Dell's vice president of operations Sean Corkery is listed as owning a €4.3m block of options and another €315,000 worth of Dell Inc shares.
Dell vice president of engineering Thomas Kitt is listed as holding €1.18m in options and another €483,000 worth of shares, according to documents from its Irish subsidiary Dell Products Manufacturing Ltd. Dell employs close to 2,000 staff at its Irish operations in Cherrywood and Limerick, many of whom are shareholders in the firm.
The Dell buyout represents the biggest technology buyout ever – eclipsing the previous record held by Carrick-on-Suir's Mike Lynch when his company Autonomy was bought for over €8bn by Hewlett Packard.
The deal is also the largest buyout transaction since the financial crisis began in 2007 and marks a return of confidence of markets.
Michael Dell and his backers have offered a price of $13.65 (€10.19) per shares. While this is 25 per cent above the share price before news of the deal broke, it is 76 per cent off Dell's all-time high.
The hugely wealthy Dell is pumping in €3.3bn of his own money, with tech-focused buyout group Silver Lake chipping in €800m. Microsoft is also offering a loan of almost €1.5bn, while four banks are providing debt finance.