Dell nears buyout, deal could come as soon as Monday -sources

By Nadia Damouni and Soyoung Kim

NEW YORK, Feb 1 (Reuters) - Dell Inc is nearing anagreement to sell itself to a buyout consortium led by itsfounder and Chief Executive Michael Dell and private equity firmSilver Lake Partners, possibly announcing a deal as soon asMonday, according to two people familiar with the matter.

Michael Dell is expected to take majority ownership of theworld's third-largest personal computer maker, which currentlyhas a market value of $23 billion, while Silver Lake andMicrosoft Corp would become minority investors, a thirdperson familiar with the matter said.

The final price the group is expected to pay Dellshareholders could not be immediately learned. The deal would mark the largest leveraged buyout since the global financialcrisis.

The transaction is set to be finalized over the weekend butthe buyout consortium is working on last-minute details and thetimetable could still slip, the people cautioned, asking not tobe named because the matter is not public.

The investment group, which held negotiations with Dell'scamp in New York on Thursday, has secured up to $15 billion ofdebt financing to take Dell private from four investment banks-- Barclays, Bank of America Merrill Lynch,Credit Suisse and RBC Capital, people familiarwith the matter said.

Barclays is also advising Silver Lake on the transaction,along with Perella Weinberg Partners, said two of the people. JPMorgan Chase & Co is advising Dell.

Representatives for Dell, Microsoft and Barclays declined tocomment. Silver Lake and Perella Weinberg could not beimmediately reached for comment.

As part of the transaction, Michael Dell will contribute hisexisting stake of almost 16 percent in the company towardgaining majority ownership, sources close to the matter havesaid.

Going private would allow Dell, which has been trying tobecome a one-stop shop for corporate technology needs as the PCmarket shrinks, to conduct that difficult makeover away frompublic scrutiny.

Dell has formed a special committee of its independentdirectors and hired Evercore Partners Inc to assesswhether the company is getting the best deal for shareholdersand not one that is just in the best interest of Michael Dell,several people familiar with the matter have told Reuterspreviously.