Blackstone Management has withdrawn its offer to buy Dell (NASDAQ: DELL ) , citing "a number of significant adverse issues [that] have surfaced," including a steep drop in PC sales and a "rapidly eroding financial profile of Dell."
Dell released Blackstone's letter, dated Thursday, in a press release this morning announcing Blackstone's move. "Blackstone has decided not to submit a definitive proposal to acquire the company and is withdrawing from the process," said Dell.
The letter from Blackstone to Dell's presiding director, Alex Mandlwhich, listed reasons for Blackstone's move, including:
Dell's "unprecedented" 14% market decline in PC volume in Q1 2013. The company's revising operating income projections for the current year from $3.7 billion to $3 billion."For the reasons set forth above, among other reasons, on behalf of Boulder Acquisition Corp., Blackstone Management Partners, Francisco Partners, Insight Venture Partners, and Riverwood Capital, I regret to inform you that we will likely not pursue this opportunity," said the letter.
Blackstone originally submitted a proposal letter to buy Dell on March 22 for around $14.25 per share.
Blackstone's dropping out of the bidding leaves investor Carl Icahn as the only bidder against a February proposal by Dell founder Michael Dell and Silver Lake Partners to take the company private. Icahn is offering $15 per share and the Dell/Silver Lake offer is for $13.65 per share. Earlier this week, Icahn agreed to limit his ownership stake in the company as he pursues a bid to buy the company with other shareholders.
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