Blackstone’s Johnson Said to Sour on Dell Bid He Helped Conceive

Blackstone Group LP decided against a bid for Dell Inc. in part because executive Dave Johnson, the computer maker’s former mergers chief, pulled support for the deal he helped conceive, said people familiar with the matter.

As he and Blackstone’s Chinh Chu conducted due diligence following the March proposal to buy Dell for more than $14.25 a share, Johnson found that the enterprise-solution business, heralded by analysts as Dell’s future, was years away from competing meaningfully in that market, said one of these people, who asked not to be named as the process was private. He also grew concerned that the managers who formed the backbone of that business had left or were likely to leave after a deal, that person said.