Dell Said To Be In Buyout Talks With Private-Equity Firms 150
puddingebola writes "Dell Inc. is reported to be in buyout talks with private equity firms. From the story, 'Dell is discussing going private with at least two firms, said one of the people, who declined to be identified because the talks are private. The discussions are preliminary and could fall apart because the firms may not be able to line up the needed financing or resolve how to exit the investment in the future, the people said.'"
Ask Hostess How Well That Worked Out (Score:5, Interesting)
Four years later, the equity firm is several hundred million dollars richer, Dell goes bankrupt and is liquidated, and thousands of former Dell employees are out of work.
If you were a bank considering a loan to Dell (and not already in collusion with the private equity firm), you should be very very skeptical you will ever see your money again.
Private equity is a scam (Score:2, Interesting)
As far as I know, "private equity" firms are companies that restructure companies while borrowing cash to finance said company ... but leaving the company holding the bag on that dept. Should the company fall (now with even more debt and someone else steering the ship) the equity firm gets a big pay off while yet another company goes under.
Good luck with that. *rolls eyes*
Re:Ask Hostess How Well That Worked Out (Score:2, Interesting)
Bain Capital.
This is essentially how they made all their money. Glad our nation dodged that bullet.
More than hardware (Score:3, Interesting)