Dell Faces Turnaround Challenge After $24.9B Buyout

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Sept. 12 (Bloomberg) -- Bloomberg deals reporter Cristina Alesci recaps the conference call with Dell founder Michael Dell after shareholders approved his $24.9 billion buyout of the computer maker and looks at what comes next for the company. She speaks on Bloomberg Television's "Bloomberg West."

You are listening to the conference call.

What did you hear?

A lot of what we have heard over the last couple of months, the executives were not anymore forthright than they had been along the way.

Michael dell was confirmed as going to own 75% of this company and what's interesting is who was not on the call -- silver lake, the partner in this deal.

It's very unusual a private equity firm goes ahead and make this kind of commitment without actually controlling the assets.

There's a major risk therefore silver lake and reputational he, silver lake went ahead and okayed the price increases even after saying it was their best and final offer.

1375 turned into that plus the $.13 dividend.

We have seen silver lake take some big risks here but what kind of return are they going to take on this deal?

Ask what is the next step?

Although they will be popping champagne tonight at michael dell's ranch, he's throwing an and formal barbecue for the advisors here.

There are some challenges ahead.

Pc sales keep declining, particularly revenue from pc sales is declining more than analysts originally expected.

Networking and software sides, is it enough to make up for that decline in revenue?

There was a major focus on the call on the fact the company still had a flexible capital structure.

A lot of people had questions on the ability to execute such a complicated turnaround plan and at the same time deal with the new debt being put on the company.

There was a lot of focus on that.

They would continue to make acquisitions and service new debt on the company.

The s&p did put out a note on this new debt yesterday basically saying they have to reduce costs.

That's a major focus for the employees of delta.

Cristina alesci, thank you

This text has been automatically generated. It may not be 100% accurate.


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