Michael Dell reportedly wants to assume majority control of Dell.
Dell co-founder and chief executive officer Michael Dell may contribute equity financing of $500 million to $1 billion to increase his ownership in the company above 50 percent, giving him majority control, Bloomberg reports. Mr. Dell currently owns a 15.7 percent stake worth in the neighborhood of $3.6 billion. Other partners include private equity firm Silver Lake and Microsoft, each of which would contribute $1 billion to $2 billion.
Gaining a majority share in what would become a private company ensures job security for Mr. Dell, who could still remain as the company's chairman and CEO following a buyout that doesn't involve him, but in that scenario, his employment would be subject to review by the new owner(s).
Ironically, Mr. Dell's determination to hang onto his company is one reason why some private equity firms aren't interested in joining in, CNN Money reports. It's not that they don't want Mr. Dell involved with the company, but they don't like the idea of not being able to fire him if the situation warrants.
Dell, founded in 1984, is currently the world's third largest PC maker, behind Lenovo (No. 2) and Hewlett-Packard (No.1).