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Dell in talks to take the company private, say reports

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PC maker Dell is in negotiations to take the company off from the US publicly traded stock market, according to reports.

Shares in Dell are up 13% and still rising on a report in Bloomberg today that Dell was in talks with large private equity firms to finance a deal to take the firm private.

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The Dell Precision M6700 Mobile Workstation laptop


The once-mighty Dell has struggled in recent years to compete with rival PC makers, along with the rise of Apple's Mac computers and the shift to touchscreen and tablet devices.

Dell is now the third-largest PC vendor in the world behind HP and Lenovo, and lost a third of its value last year. It currently has an estimated market value of $18.9 billion.

In its most recent financial report in November last year, Dell confirmed that its quarterly revenue was down 7% year-on-year, while profits were down 34%.

Citing anonymous sources, Bloomberg said that Dell is in talks with two financial firms - TPG Capital and Silver Lake - to help with the buyout deal.

As founder and chief executive Michael Dell still owns 15.7% of the company, it is thought that it may be easier to work out the mechanics of the deal. But Bloomberg said that the talks could still fall down.

The Wall Street Journal has also published a separate report stating that the Dell buyout discussions are "serious", and a deal could emerge in the next six weeks.

Taking the company private could give Michael Dell greater freedom to accelerate efforts to restart the firm's growth, as well as stop the quarter-on-quarter scrutiny from public shareholders.

Dell declined to comment on the reports.

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