ANDREW ROSS SORKIN &
The Blackstone Group has walked away from the bidding for Dell,the computer maker confirmed on Friday.
The private equity giant,along with a separate bidder,the activist investor Carl Icahn,had been inspecting the books of the personal computer maker before deciding whether to make a rival bid to the $13.65-a-share offer to take the company private from the companys founder,Michael Dell,and Silver Lake Partners,a technology-focused private equity firm.
Blackstone decided to withdraw after discovering that Dells business was deteriorating faster than it previously understood,people involved in the negotiations said.
Blackstone notified the special committee of Dells board on Thursday that it would no longer pursue its bid,these people said. On Friday,the committee said that it has been informed by Blackstone Management Partners LLC that the group led by Blackstone has decided not to submit a definitive proposal to acquire the company and is withdrawing from the process.
The personal computer industry has been grappling with falling prices and with competition from smartphones and tablets. Its weakness was vividly illustrated by a report last week by the International Data Corporation that showed a sharp drop in global sales.
PC unit sales overall in the United States fell 12.7 per cent in the first quarter from a year earlier,according to the report. At Dell,US shipments were down 14 per cent,while worldwide shipments were down more than 10 per cent.