HP (HPQ) is unlikely to carry out a leveraged buyout, or LBO, similar to the transaction that Dell (DELL) is undertaking, Jefferies analyst Peter Misek wrote in a note to investors earlier today. It's unlikely that anyone would take as large a stake in HP as Michael Dell took in his company, according to the analyst. Dell announced earlier this morning that it had agreed to sell itself to Michael Dell and investment firm Silver Lake for $13.65 per share. Michael Dell "will maintain a significant equity investment in Dell," and will make an additional cash investment in it, the company said. Based on the valuation that Dell's shareholders received, HP would be worth $12.50-$13.50 in an LBO, Misek wrote. Dell's willingness to take a large stake in his company is a key reason why that deal was able to occur, Misek contended. Meanwhile, the analyst expects HP to report significantly lower than expected earnings per share in fiscal year 2013, and he maintained a $10 price target and Underperform rating on the shares. In mid-morning trading, HP was flat at $16.21.
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