tag:blogger.com,1999:blog-8152901575140311047.post372699613313542673..comments2024-03-29T07:41:47.433-04:00Comments on Musings on Markets: Michael Dell's Conflicted BuyoutAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger35125tag:blogger.com,1999:blog-8152901575140311047.post-71635787626292512282014-07-27T14:55:25.381-04:002014-07-27T14:55:25.381-04:00Michael Dell have superb idea Musings on Markets. ...Michael Dell have superb idea Musings on Markets. i am petty sure. thanks for share this post.<br /><br /><a href="http://www.richmedia.com.sg/branding-agency-in-singapore/" rel="nofollow">Singapore Branding Agency</a> | <a href="http://www.richmedia.com.sg/" rel="nofollow">Branding Company In Singapore</a>Edie Jamshttps://www.blogger.com/profile/13851241415587601010noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-76617170726563779382014-03-10T15:46:48.050-04:002014-03-10T15:46:48.050-04:00Dell and some Silcon Valley venture capital firm w...Dell and some Silcon Valley venture capital firm with deep pockets used a Cayman offshore company to shelter a lot of money.<br /><br />http://tomazz1.wordpress.com/2014/03/08/tax-planning-for-pfics-and-cfcs-and-fatca/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-62445926528255377972014-02-07T12:45:16.246-05:002014-02-07T12:45:16.246-05:00nice post. I just say thank for this information. ...nice post. I just say thank for this information. hope u well there..<br /><a href="http://www.viarshop.com/" title="jual sepatu adidas" rel="nofollow"> jual sepatu adidas</a> | <a href="http://www.viarshop.com/products/183/0/ANTI-HERO/" title="jual sepatu vans" rel="nofollow"> jual sepatu vans</a> | <a href="http://www.viarshop.com/" title="jual sepatu new balance" rel="nofollow"> jual sepatu new balance</a> | <a href="http://ar-sembilan.blogspot.com/2014/01/review-toko-jual-sepatu-online.html" title="review jual sepatu" rel="nofollow"> review jual sepatu </a> | <a href="http://adiradili.blogspot.com/2014/01/ulasan-jual-sepatu-online-shop.html" title="ulasan jual sepatu online" rel="nofollow"> ulasan jual sepatu online</a> | <a href="http://blashz.tumblr.com/jual-sepatu-online" title="jual sepatu online" rel="nofollow"> jual sepatu online</a> | <a href="http://jualsepatumurahonline.weebly.com/" title="jual sepatu murah online" rel="nofollow"> jual sepatu murah online</a> | <a href="http://flashd2.blogspot.com/2014/01/viarshop-recommended-shop.html" title="rekomen jual sepatu" rel="nofollow"> rekomen jual sepatu </a> | <a href="http://flashd3.blogspot.com/2014/01/rekomendasi-toko-sepatu-viarshop.html" title="rekomendasi toko sepatu" rel="nofollow"> rekomendasi toko sepatu</a> | <a href="http://flashd6.blogspot.com/2014/01/viarshop-jual-sepatu-terbaik-indonesia.html" title="jual sepatu terbaik" rel="nofollow"> jual sepatu terbaik</a> | <a href="http://reviewjualbeli.pbworks.com/w/page/74247725/review%20produk%20sepatu%20viarshop" title="review jual sepatu online" rel="nofollow"> review jual sepatu online</a> | <a href="http://blashz.tumblr.com/jual-sepatu-online" title="jual sepatu online" rel="nofollow"> jual sepatu online</a> | <a href="http://www.pekanbaruproperti.com/category/rumah/" title="jual rumah pekanbaru" rel="nofollow"> jual rumah pekanbaru</a> | <a href="http://www.pekanbaruproperti.com/category/toko/" title="jual toko pekanbaru" rel="nofollow"> jual toko pekanbaru</a> | <a href="http://www.pekanbaruproperti.com/category/apartement/" title="sewa apartement pekanbaru" rel="nofollow"> sewa apartement pekanbaru</a> | <a href="http://www.pekanbaruproperti.com/category/tanah/" title="jual tanah pekanbaru" rel="nofollow"> jual tanah pekanbaru </a> | <a href="http://www.pekanbaruproperti.com/category/kos/" title="sewa kos pekanbaru" rel="nofollow"> sewa kos pekanbaru </a> | <a href="http://ar-sembilan.blogspot.com/2014/02/hotel-murah-di-jakarta.html" title="hotel murah di jakarta" rel="nofollow"> hotel murah di jakarta</a> | <a href="http://ar-sembilan.blogspot.com/2013/10/jual-madu-hutan-asli.html" title="Madu Hutan" rel="nofollow"> madu hutan</a>Anonymoushttps://www.blogger.com/profile/09155409676495976433noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-39684454309036907462013-10-17T21:59:26.689-04:002013-10-17T21:59:26.689-04:00This blog is truly awesome in all aspects.
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I am from India doing the chartere...Respected sir,<br /> I am from India doing the chartered accountancy course.<br />I have learned a lot from you.<br />It's because of you, I did a lot of project on valuation.<br />I learned what stock market is.<br /><br />You are my god.<br />Thanks a lot professor Damadoran.<br /><br />Nirajan Joshi<br />Nirajan Joshinoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-28904900877752205772013-03-15T09:56:35.101-04:002013-03-15T09:56:35.101-04:00How is value created from Icahn's proposal whi...How is value created from Icahn's proposal which he suggests is worth almost $23 / share? I am struggling with this.<br /><br />I get that shareholders receive $9 from the special dividend. Of course, this will be worth something less than $9 for many investors after paying personal taxes. The dividend will be financed with new debt and existing cash (much of it offshore and subject to tax if repatriated).<br /><br />Icahn says that post dividend the shares will be worth almost $14 - I don't know how he comes up with this number. <br /><br />After the dividend is paid, the shares are worth price - $9. And the equity is riskier now due to the recap. So how does Icahn get a value of almost $14 post dividend?<br />Is it that there is a substantial discount on Dell's cash holdings that will be eliminated? Will the new debt will create tax shields worth a substantial amount? Is it that the recap will solve some agency issues that are lowering the value of the equity?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-42069164797032606882013-03-12T12:54:12.748-04:002013-03-12T12:54:12.748-04:00Thank God for Carl Icahn!Thank God for Carl Icahn!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-57204434349481912462013-03-06T20:54:44.275-05:002013-03-06T20:54:44.275-05:00A lot of buyout deals are designed in a way to pre...A lot of buyout deals are designed in a way to prevent or keep other potential suiters from making a much better offer for a company. Private equity firms will play lots of dirty little tricks to keep from having to pay a higher premium. The valuations of a lot of companies is often very difficult to determine. Valuation can be very subjective. QUALITY STOCKS UNDER 5 DOLLARShttp://www.zipleaf.us/Companies/The-Manhattan-Calumet-Value-Stock-Hotlinenoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-43582019587238742182013-02-28T08:02:45.972-05:002013-02-28T08:02:45.972-05:00In 2011, his 243.35 million shares of Dell stock w...In 2011, his 243.35 million shares of Dell stock were worth $3.5 billion, giving him 12% ownership of the company.[2] His remaining wealth of roughly $10 billion is invested in other companies and is managed by a firm whose name, MSD Capital, incorporates Dell's initials.<a href="http://www.technologyport.blogspot.com" rel="nofollow">latest technology</a>marcos bakermhttps://www.blogger.com/profile/11923768249840498382noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-22788586060475222602013-02-25T06:41:32.259-05:002013-02-25T06:41:32.259-05:00one of the world’s leading sellers of personal com...one of the world’s leading sellers of personal computers (PCs). He was ranked the 41st richest person in the world on 2012 Forbes Billionaires list, with a net worth of US$15.9 billion as of March 2012.<a href="http://www.webnomicstech.net" rel="nofollow"> web development</a>marcos bakermhttps://www.blogger.com/profile/11923768249840498382noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-49671571220918891402013-02-23T13:55:32.339-05:002013-02-23T13:55:32.339-05:00CPC Consulting specializes in Construction Plannin...<br />CPC Consulting specializes in <a href="http://www.concentricpc.com/%5D" rel="nofollow">Construction Planning</a>], <br /><a href="http://www.concentricpc.com/%5D" rel="nofollow">Project Controls Consulting</a>, <a href="http://www.concentricpc.com/%5D" rel="nofollow">Construction Scheduling</a>], <a href="http://www.concentricpc.com/%5D" rel="nofollow">Construction Project Controls</a>]<br /> providing clients with detailed quantity and pricing for all project phases.<br /><br />misuhttps://www.blogger.com/profile/15430915041432664818noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-50175991255171043432013-02-21T02:22:36.498-05:002013-02-21T02:22:36.498-05:00Il professor Han detto: 'Ahimè! Vieni al front...Il professor Han detto: 'Ahimè! Vieni al fronte! Un falegname esperto avrebbe scelto il legno di spessore come trave del tetto e il sottile come trave e fare diversi materiali in perni benna, archi, chiavistelli e stipiti per la costruzione di casa in base alle loro specifiche condizioni.Hermes Borsehttp://www.hermesborseit2013.comnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-65182228721376935892013-02-20T06:56:54.514-05:002013-02-20T06:56:54.514-05:00Michael Saul Dell (born February 23, 1965) is an A...Michael Saul Dell (born February 23, 1965) is an American business magnate, philanthropist, and author. He is known as the founder and CEO of Dell Inc., one of the world’s leading sellers of personal computers (PCs).<a href="http://www.webnomicstech.net" rel="nofollow"> outsourcing services</a>marcos bakermhttps://www.blogger.com/profile/11923768249840498382noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-70770752448924734842013-02-15T12:59:59.113-05:002013-02-15T12:59:59.113-05:00Dear Professor,
Thanks for the response on both i...Dear Professor,<br /><br />Thanks for the response on both interest expenses and long-term investments. <br /><br />1) As per 10Q: Cash includes cash 10991 + ST investments 281 + LT investments 2908 = Total cash would be 14180.<br /><br />2) Interest expenses: Under cost of capital worksheet - To compute market value of straight debt you convert both interest expenses and principal value of debt to present value at pre-tax cost of debt. Since there is no interest expense the present value is shown at 7551 which is present value of only principal. If interest expenses of 157 were included (in cell B13) the market value would have been 8257. Cost of capital would change from 10.36% to 10.31%. This is hardly any change. But I would really appreciate your response on whether what I have mentioned is correct. <br /><br />Thanks once again. <br /><br />regards<br />sp<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-49140381444237368492013-02-15T12:06:55.121-05:002013-02-15T12:06:55.121-05:00Most of the time when a family owned company wants...Most of the time when a family owned company wants to go from being a public company to a private company greed is the big factor in their decision. The family cannot resist the desire to buy all the shares outstanding at a great price even if they already own better than two thirds of all the stock in the company. Sometimes lots of debt must be incurred in order for the buyout to take place. The situation being created is not in the best interest of the company. The companies credit rating may be reduced to junk bond status. And yet this type of thing occurs again and again.QUALITY STOCKS UNDER 5 DOLLARShttp://www.zipleaf.us/Companies/The-Manhattan-Calumet-Value-Stock-Hotlinenoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-40585394569321465862013-02-15T11:48:40.528-05:002013-02-15T11:48:40.528-05:00Frank,
I did not use the interest expenses to comp...Frank,<br />I did not use the interest expenses to compute a synthetic rating (that is the only place it is used) but I did use a pre-tax cost of debt of 3.65% for Dell, reflecting its current risk.<br />On the long term investments, I used the cash and equivalents from Bloomberg (which usually includes long term investments) but if they do not, I have to check the long term investments to make sure that they are, in fact, the equivalent of cash and not double counting.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-35552047434088024302013-02-15T11:48:40.079-05:002013-02-15T11:48:40.079-05:00Frank,
I did not use the interest expenses to comp...Frank,<br />I did not use the interest expenses to compute a synthetic rating (that is the only place it is used) but I did use a pre-tax cost of debt of 3.65% for Dell, reflecting its current risk.<br />On the long term investments, I used the cash and equivalents from Bloomberg (which usually includes long term investments) but if they do not, I have to check the long term investments to make sure that they are, in fact, the equivalent of cash and not double counting.Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-64650030856966300602013-02-15T10:05:28.449-05:002013-02-15T10:05:28.449-05:00Dear Professor,
Could you please let us know why ...Dear Professor,<br /><br />Could you please let us know why long-term investments of $2908 are not included in cash? <br /><br />Also please tell us why interest expenses (marker value of debt) are not considered in computation of cost of capital.<br /><br />Thanks for this.<br />regards<br />spAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-18189087232338228672013-02-15T04:10:01.033-05:002013-02-15T04:10:01.033-05:00Hi Prof,
Nice article, however i think certain th...Hi Prof,<br /><br />Nice article, however i think certain things are not exactly going to happen in the real world!: esp Michael Dell accepting his mistakes as you call them.<br /><br />Would it not be prudent to have a market appointed valuer to appraise the actual value of the stock and getting the Dell Group to accept it...this is based on the assumption that like the Securities Appealate authority in india there is a similar system in the US as well.<br /><br />Where the appraised is of the same opinion on the offer price per share then no one is going to be pinched!<br /><br />Vignesh<br /><br />Vignesh Snoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-43146697504801782462013-02-13T13:44:52.683-05:002013-02-13T13:44:52.683-05:00I love your idea of Michael Dell having to sell hi...I love your idea of Michael Dell having to sell his stake at the price he is offering.Wilsonnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-36681135300581967342013-02-13T09:41:20.913-05:002013-02-13T09:41:20.913-05:00Thanks for lending your thoughts on this deal. Thanks for lending your thoughts on this deal. The Contrarian Individual Investorhttps://www.blogger.com/profile/10812447117232102268noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-27783775846396127702013-02-13T07:05:48.952-05:002013-02-13T07:05:48.952-05:00How interest expenses are NIL on 9 billion debt? How interest expenses are NIL on 9 billion debt? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-66885412685834844672013-02-13T04:39:40.621-05:002013-02-13T04:39:40.621-05:00Dear Sir,
I find price discovery in a LBO based o...Dear Sir,<br /><br />I find price discovery in a LBO based on just one reference point (viz., the starting bid) not adequate. Since, the price should be the price at which Mr. Dell is willing to sell (since he knows more info than me as an insider) and not the one at which he is willing to buy, should'nt the price be MAX (bid price, (price discovered through a reverse auction for the tendering shareholders)) ?Varadhahttps://www.blogger.com/profile/02546300910849990655noreply@blogger.com