As the close of the “go shop” period following the offer of a coalition led by Michael Dell to buy the company he founded and take it private, Dell Corp. has received two competing offers for the company – and its board says both of them may be superior to Dell’s bid.
The competing offers come from Blackstone Group LP and from activist investor Carl Icahn, who has been buying up Dell stock in recent weeks. Both proposals would see Dell’s stock continue to trade publicly, while Dell’s would take the company private. According to Dell’s board, the Michael Dell-led consortium has expressed a willingness to revisit its offer.
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No bids were made by Dell rivals HP and Lenovo, who each used the go shop period to get a look into their competitor’s books. The two companies will be keen to capitalize though in the uncertainty the two competing bids will create. Dell’s future will now be up in the air for an extended period of time, as competing bids are evaluated, new offers made, and finally a decision made by shareholders.
With Dell customers and partners uncertain about the vendor’s future direction, its competitors will be certain to pounce on this period of fear, uncertainty and doubt.