Dell Inc., which may announce this week it's being taken private by a group led by Silver Lake Management LLC, hired Evercore Partners Inc. to advise a special committee of the board and to test whether the company could get a better offer, said two people with knowledge of the matter.
Dell hired the boutique investment bank to run a so-called go-shop process should a buyout be formalized, said the people, who asked not to be identified because the process is private.
Dell expects shareholder lawsuits if a deal is announced, said the people, and the go-shop process will show whether there are superior offers from other buyout firms or companies.
JPMorgan Chase & Co. is the main bank advising Round Rock, Texas-based Dell on its talks with Silver Lake, people familiar with the process have said. Dell sees the hiring of Evercore and other steps it's putting in place as protections against lawsuits and other criticisms of the buyout, said one of these people.
Eoin Treacy's view Dell have clearly decided that they would
be better off away from the pressure of quarterly reporting as they struggle
to remain relevant in a world so quickly evolving and refocusing on tablet computers
and mobile technology. Dell halved in
2012 before finding support near $8 in November and has since rebounded on speculation
it is about to be taken private.
A considerable number of technology companies have struggled to keep pace with the rapidly changing environment. Their shares have underperformed as a result. However, it would probably be a mistake to write these companies off. They often have substantial reserves and a proven capability to manufacture attractive and functional products. They have lagged but the challenge now is whether they will succeed in reinventing themselves.
Hewlett Packard fell from a 2010 peak near $50 to a November low near $11 and has since rebounded to close the oversold condition relative to the 200-day MA. It will need to sustain a move above the trend mean in order to break the medium-term downtrend and suggest a return to demand dominance beyond the short term.
Yahoo has been overshadowed by Google in the search engine market for a decade but the share is showing renewed signs of life as it continues to hold the breakout from a four-year base. A sustained move below $18 would be required to question medium-term scope for additional upside.
Xerox has been drifting lower since late 2010 and halved in the process. Its rally from the November lows has seen the share sustain a close above the 200-day MA for the first time since early 2011 and a move below $6.60 would be required to question potential for additional upside.