Dell to be bought back by founder

DellComputer giant Dell is to be bought back by its founder in a 24.4 billion dollar (£15 billion) deal that sees it leave the stock market after 25 years.

Michael Dell, the founder, chairman and chief executive of the world's third largest PC maker, is part of a consortium of private finance which plans to take over the company in a buyout that involves a two billion dollar (£1.27 billion) loan from tech giant Microsoft.

The deal, which includes global technology investment firm Silver Lake taking a stake, was approved unanimously by Dell's independent directors. It would see shareholders receive 13.65 dollars per share.

Mr Dell, 47, will continue to lead the company and invest his shares in the firm as well as making a "substantial additional cash investment" into the firm after the sale, the company said.

Announcing the decision, Mr Dell said the deal would allow the firm to focus more on bringing the best possible products to its customers.

"Dell has made solid progress executing this strategy over the past four years, but we recognise that it will still take more time, investment and patience, and I believe our efforts will be better supported by partnering with Silver Lake in our shared vision," he said.

"I am committed to this journey and I have put a substantial amount of my own capital at risk together with Silver Lake, a world-class investor with an outstanding reputation.

"We are committed to delivering an unmatched customer experience and excited to pursue the path ahead."

Mr Dell, who owns 14% of shares in the company, said other money for the huge deal will come from bank loans.

He started the firm, then called PCs Limited, with 1,000 dollars as a 19-year-old medical undergraduate at the University of Texas, Austin, in 1984. It launched its first foreign subsidiary in the UK in 1987.

10 biggest companies in the world
See Gallery
Dell to be bought back by founder

Wal-Mart Stores, or Walmart, is an American retailer that runs chains of discount department and warehouse stores around the world.

The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and first traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas and has around 8,500 stores in 15 countries, under 55 different names.

Royal Dutch Shell, more commonly known as Shell, is a global oil and gas company headquartered in Holland, but with its registered office in London.

With operations in more than 90 countries, it is active in every area of the oil and gas industry, including exploration and production, refining, petrochemicals, power generation and trading.

Exxon Mobil Corporation, or ExxonMobil, is an American oil and gas corporation formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas.

With 37 oil refineries in 21 countries, Exxon Mobil Corporation is the largest refiner in the world.

BP is yet another global oil and gas company, this time headquartered in London. It has operations in more than 80 countries, produces about 3.8 million barrels of oil per day and has 22,400 service stations worldwide.

The name BP is derived from the initials of one of the company's former legal names, British Petroleum.

Sinopec Group is one of the major petroleum companies in China, headquartered in Beijing.

Its business includes oil and gas exploration as well as the production and sales of petrochemicals and chemical fibres.

China National Petroleum Corporation is a state-owned fuel-producing corporation and the largest integrated oil and gas company in China. It has its headquarters in Beijing.

CNPC - the parent company of PetroChina - was created in 17 September 1988 when the government decided to disband the Ministry of Petroleum and create a state owned company to handle all Petroleum activities in China.

State Grid Corporation of China is the largest electric power transmission and distribution company in China, once again headquartered in Beijing.

It has subsidiaries in Northern China, Northeastern China, Eastern China, Middle China and Northwestern China.

Toyota Motor Corporation, more commonly known simply as Toyota, is a multinational automaker headquartered in Toyota, Japan.

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries. Its brands include Toyota, Lexus and Daihatsu.

Japan Post Holdings is a state-owned Japanese company that deals with mail delivery and financial services.

It is headquartered in Tokyo and was founded on January 23, 2006.

Chevron Corporation is an American energy company headquartered in San Ramon, California.

It is active in more than 180 countries and is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production, and power generation.


Read Full Story