Michael Dell Said to Consider Blackstone LBO Only With CEO Guarantee

Even CEO’s are trying to keep their job nowadays. Bloomberg is reporting that Dell founder Michael Dell will only consider backing a buyout by Blackstone Group LP if the private-equity firm guarantees he can remain as chief executive officer.

In several recent meetings in Austin, Texas, with Chinh Chu and David Johnson -- the Blackstone executives overseeing the firm’s bid -- Michael Dell said he would be more likely to support their proposal if he retained an influential role, a second person familiar with the talks said. Negotiations are ongoing and the two sides may not reach an understanding.

Michael Dell said on Feb. 5 that he agreed to take his company private in a $24.4 billion transaction with Silver LakeManagement LLC. He’s now using his 15.6 percent stake as leverage to preserve his leadership position as the company weighs competing offers from Blackstone and billionaire investor Carl Icahn, said one of the people, who asked not to be named because the talks are private.

Bloomberg has the entire story on the Dell drama and by entire we mean over 30 paragraphs. Check it out at http://www.bloomberg.com/news/2013-03-31/michael-dell-said-to-consider-blackstone-lbo-with-ceo-guarantee.html