Dell Inc. (DELL:$13.26,00$-0.37,00-2.71%) Monday was finalizing a deal to take the computer-maker private at $13.50-$13.75 a share, said people familiar with the matter, who cautioned that talks are ongoing.
As currently envisioned, Microsoft Corp. (MSFT:$27.55,00$-0.38,00-1.36%) would invest about $2 billion in the form of a subordinated debenture, a less-risky investment than common stock; Silver Lake Partners, the private-equity firm, would invest more than $1 billion; and the investment firm of Michael Dell, the company's founder and chief executive, would invest about $700 million, the people said. Mr. Dell is also contributing his stake, nearly 16% of the company's shares, worth at least $3.7 billion at the share price envisioned for the deal.
The people said a final agreement hadn't been reached and terms could shift.
Monday morning, Dell shares were trading around $13.24, down 2.9%.
The deal, which would value the company at more than $23 billion, would mark an unofficial end to the era when PCs were the dominant computing device. It would also be the largest such transaction since the financial crisis.