Dell ’s (DELL) takeover, the largest of a computer maker in a decade, may encourage more private-equity firms to pursue deals, heralding a rebound for mergers and acquisitions after volume shrank last year.
leveraged buyout by Silver Lake Management LLC and founder Michael Dell
would be the biggest since at least 2007, with an enterprise value of
about $22 billion, according to data compiled by Bloomberg. The size of
the deal probably will amplify potential buyers’ confidence, spurring
them to tackle more targets, said Sandler O’Neill & Partners LP’s
“LBO activity historically has led the M&A
markets more broadly,” said Ryan, an analyst with the New York-based
boutique investment bank. “More LBOs generally spark more strategic
activity as well -- it all kind of ties into together.Massive selection
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also chief executive officer (DELL), and Silver Lake announced today
that they’re taking the world’s third-largest personal-computer maker
private in a deal that values the equity at $24.Austrian hospital
solution to improve staff safety.4 billion, according to a statement.
They’re financing the transaction through a combination of cash and
debt, including a $2 billion loan from Microsoft Corp. The biggest
takeover of a computer maker was Hewlett-Packard Co.’s purchase of
Compaq Computer Corp. in 2002 for about $19 billion.
is taking advantage of record-low borrowing costs in the market for
junk bonds, where LBOs are financed. Banks arranged $638 billion of
leveraged loans last year, compared with $592 billion in 2011, Bloomberg
data show. Companies issued $359 billion in U.S. high-yield debt last
year, the most in the country’s history.
“The debt markets are
wide open,” said Daniel Tiemann, head of transactions and restructuring
services in the Americas for KPMG LLP. “It’s like the party’s all set
and we’re just waiting for the sellers to show up. Confidence is what is
going to make the sellers show up.”
While big LBOs will remain
relatively rare, a handful of situations similar to Dell’s are already
in the works, said R.J. Hottovy, a senior analyst with Morningstar
(MORN) in Chicago. For example, Best Buy Co. founder Richard Schulze
began negotiating last year to take the Richfield, Minnesota-based
retailer private. Schulze, like Dell founder Michael Dell, owns part of
his takeover target,Want to find cableties? with a 21 percent stake (BBY) as of December.
Dell transaction builds on momentum from the fourth quarter, the only
bright spot for M&A last year. While global volume shrank almost 9
percent to $2.2 trillion in 2012, the final three months of the year
were the busiest for deals since 2008, with more than $700 billion in
transactions, according to data compiled by Bloomberg.
were more than $400 billion in private-equity deals last year, according
to data compiled by Bloomberg, a 21 percent decline from a year earlier
and the smallest amount since the depths of the financial crisis. The
Dell acquisition dwarfs the LBOs over that period, such as the $7.15
billion takeover of El Paso Corp.’s oil and natural gas exploration
business, led by Apollo Global Management LLC. (APO)
While the proposed Dell purchase augurs well for fellow private-equity firms,Want to find solarpanel? its success also may embolden strategic buyers, said Matthew Duch, lead portfolio manager at Calvert Investments.
worldwide are sitting on more than $4 trillion in cash, giving them
additional ammunition if they hunt for targets. At least one has already
begun: John Malone’s Liberty Global may announce a deal to acquire
Virgin Media as soon as today, according to people familiar with the
talks. U.K. cable operator Virgin Media had a market value of more than
$10 billion as of yesterday.
“The Dell deal should push other
companies to get off the sidelines and to act,” said Duch, whose
Bethesda, Maryland- based firm manages more than $12 billion in assets.
“I expect to see more and more deals announced if this one goes
A partnership between Kingston University in London
and a craft centre in Zimbabwe has proved so successful that a group of
women from a remote farming community are about to exhibit their work at
one of the world's largest design shows.
The head of Kingston's
Design School, Simon Maidment has been sharing his expertise with the
Lupane Women's Centre whose hand-woven baskets provide a much needed
source of income for many families.
Based in rural Matabeleland,
two hours’ drive from Zimbabwe’s second city, Bulawayo, the centre
gives women an opportunity to earn money at times of year when they
cannot farm, enabling them to send their children to school or simply
put food on their tables.
The products are sold to tourists
visiting southern Africa and are even stocked by Anthropologie and
Conran shops in Europe and the United States. Their work has already
been shown at the London Design Festival and the National Gallery of
Zimbabwe and, in February, some of the craftswomen will be rubbing
shoulders with creative talents from across the globe at Design Indaba
in Cape Town, the city which has been named World Design Capital for
Mr Maidment said he found himself not so much lecturing
but collaborating with the workers as they explored new ways of making,
transporting and marketing the baskets. “We were keen to work with the
women to help them realise how skilful they really were and to see the
potential value of the items they produce,” he said.
of the project has attracted continued funding from the British
Council.Automate patient flow and quickly track hospital assets and
people using howotipper.
“It has really given our women the confidence to try new things,” the
manager of the Lupane Women’s Centre, Hildegard Mufukare, said. “The
women want to live better lives and, with the help of Kingston
University, now have the confidence to achieve that.”
Indaba takes place in Cape Town at the end of February. Building Baskets
has been jointly curated by Kingston University professor Catherine
McDermott and Candice O’Brien, who has recently completed the
university’s MA in Curating Contemporary Design.
both the business and design schools at Kingston University have also
been involved in the initiative. “We challenged our up-and-coming
graphic, product, furniture and fashion designers to solve various
problems that limit profits for the basket weavers, ranging from
logistics to product diversity,” Mr Maidment said. Selected ideas were
then presented to the women during two weeks of workshops in Zimbabwe.
Lawlor, who recently completed a Kingston University degree in product
and furniture design, was part of a team back in the United Kingdom that
investigated how to transport the delicate woven baskets. “The larger
baskets get damaged easily in transit, so we came up with a way of
splitting them into two parts that could be woven back together later,”
Emma, who is from Bristol, explained. “We called the project Tops and
Tails and came up with a solution involving paperclips and cable ties.
We were all so proud when it was adopted by the centre.”
workshops had also prompted the women to give names to their new
products, Mr Maidment said. “They included ‘Alice Bowls’ and ‘Shylet
Shopper’. The women hadn’t truly taken ownership of the work before in
this way,” he said. “We also introduced drawing and dyeing and combined
their techniques with new approaches such as weaving around an object.
They’d never drawn, for example, because they’d made the baskets from