Microsoft to invest up to $3bn in Dell buyout, sources claim

News 23 Jan, 2013

Software giant poised to offer hardware firm a cash injection, according to reports.

Microsoft is in discussions to invest between $1 billion and $3 billion of mezzanine financing in a buyout of Dell, it has been claimed.

Private equity outfit Silver Lake Partners is trying to finalise a bidding group to take the hardware giant maker private, and has opened discussions with potential equity partners, according to sources.

Dell also has formed a special committee to take a close look at any potential deal on the table, sources have claimed. If successful, it would be one of the largest corporate buyouts since before the global financial crisis.

Microsoft, which accelerated its foray into computer hardware in 2012 with the launch of the Surface tablet, will provide the capital in the form of mezzanine financing according to CNBC, which is a hybrid of debt and equity.

Microsoft and Dell both declined to comment on the CNBC report. Shares in Dell gained climbed 2 per cent to $13.08 in late morning trade.