The Zacks Analyst Blog Highlights: Dell, Blackstone Group, Apple, IBM and
CHICAGO, March 27, 2013
CHICAGO, March 27, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks
featured in the Analyst Blog. Every day the Zacks Equity Research analysts
discuss the latest news and events impacting stocks and the financial markets.
Stocks recently featured in the blog include Dell Inc. (Nasdaq:DELL),
Blackstone Group (NYSE:BX), Apple Inc. (Nasdaq:AAPL),IBM (NYSE:IBM) and Cisco
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Here are highlights from Tuesday's Analyst Blog:
Dell Keeps Getting Lots of Attention
A special committee formed by Dell Inc. (Nasdaq:DELL) recently announced that
a "go shop" period has been awarded due to the merger agreement between Dell
and entities owned by Michael Dell. Two proposals were submitted to the
special committee, one by fund manager Blackstone Group (NYSE:BX) and the
other by entities of activist investor Carl Icahn. The shares of Dell
responded positively and have moved up.
The Special committee comprises four independent directors. After detailed
discussions with independent financial and legal advisors, the committee
concluded that both proposals had the credibility to result in deals in
accordance with the terms of the existing merger agreement.
Michael Dell's $24.4 billion takeover bid is now in jeopardy because of the
higher prices being offered by the prominent investors. Billionaire Carl Icahn
is ready to form an alliance with Blackstone Group LP in order to take control
of this leading computer maker away from its founder.
Icahn has reached a conclusion after completing its discussion with
Blackstone, after the bids have come from the other parties in the deal, to
put some amount on the table from Michael Dell and private equity firm Silver
Lake Partners LP. This new joint bid offers much more return to the
shareholders. The new bids are far better for shareholders compared to the
offer made previously.
The inclusion of the third party has been approved and materialized by the
special committee. The success of the company's go-shop process has yielded
two alternative proposals, which have the potential to create additional value
for Dell's shareholders.
Although privatization might have helped Dell move away from public scrutiny,
the go-shop period has raised new problems for founder Michael Dell. It now
appears that privatization could take some time because of the interest
generated by outside parties.
This apart, the ever-increasing competition from companies such as Lenovo,
Asustek, Apple Inc. (Nasdaq:AAPL),IBM (NYSE:IBM) and Cisco Systems
(Nasdaq:CSCO) has restricted Dell's growth prospects. These players are
growing at a faster rate than Dell, even in the emerging markets. We are also
concerned about the conservative tech spending, continued weakness in the PC
market in 2013, declining revenues and competition from its peers.
Currently, Dell has a Zacks Rank #3 (Hold)
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