Breaking News from CNBC's David Faber: Price for a Dell Deal Would Be Between $13.50-14 A Share
When: Today, Tuesday, January 15th
Where: CNBC's "Closing Bell with Maria Bartiromo"
Following is breaking news from CNBC's David Faber. Additionally, here is a link to the story and embeddable video on CNBC.com: http://www.cnbc.com/id/100382134.
All references must be sourced to CNBC.
DAVID FABER: THANKS VERY MUCH MARIA. JOINING YOU ON THE PHONE FROM MIDTOWN. DO WANT TO FILL IN SOME GAPS THAT WE HAVE IN TERMS OF OUR UNDERSTANDING OF WHAT EXACTLY IS GOING ON WITH THIS POTENTIAL LEVERAGED BUYOUT OF DELL AND I THINK I CAN DO THAT THIS AFTERNOON. ONE KEY QUESTION WE'VE HAD OF COURSE SINCE WE FIRST HEARD THIS NEWS YESTERDAY IS HOW DO THEY DO IT ON THE SIZE OF THE EQUITY CHECK BUT MY UNDERSTANDING IS AS FOLLOWS. THE EQUITY CHECK FROM SILVER LAKE AND POTENTIALLY AT LEAST ONE OTHER INVESTOR WOULD ONLY BE AROUND $2 BILLION. WHY IS THAT? WELL THAT IS THE BECAUSE DELL IS GOING TO BRING BACK CASH FROM OVERSEAS POTENTIALLY REPATRIATE A BIT OF IT FOR A DECENT AMOUNT OF THE CASH, MY UNDERSTANDING. IT IS SEEN AS SOMETHING THAT IS POSSIBLE TO BE DONE DESPITE HAVING TO PAY THOSE TAXES. THAT OF COURSE WILL LOWER THE OVERALL PRICE, LOWER THE DEBT BUT MORE IMPORTANTLY PERHAPS LOWER THE EQUITY CHECK THAT WOULD BE NEEDED TO TAKE…
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