Dell in talks to go private: Report

Dell in talks to go private: Report Zeebiz Bureau

New York/ New Delhi: Dell Inc shares surged late Monday on reports that the computer maker is in talks to go private.

The stock rose 13% to nearly a eight-month high to close at $12.29, after the reports surfaced that the world's No. 3 PC maker is in talks with private equity firms on a potential buyout.

Reportedly, the firms are now holding discussions on a deal with Chief Executive and founder Michael Dell, who owns about 14 percent of the company.

Dell has lost market share to Hewlett Packard and China's Lenovo and has also lost 40 percent of its value since last year's peak.

The Wall Street Journal cited unidentified sources as saying TPG and Silver Lake could team up on an offer, possibly in conjunction with other investors such as pension funds. JPMorgan Chase & Co was also involved in the negotiations, it added.

Some analysts say taking the company private, an idea that has surfaced sporadically in past years, makes sense.

With Agency Inputs