Greenlight Company Presentation
Dell's Cash as Described to Buyout Partners
The Management Buyout in the Dell
Greenlight Capital, Inc.
Bring it on home!
PER
Look under the couch cushions!
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Michael Dell probably didn't mind the stock falling. For him, it created an opportunity. Now, he wants
to take Dell private and voilà! The balance sheet will be fully utilized to finance his purchase of the
company. Dell's cash-rich balance sheet will become a leveraged balance sheet. At least some of the
untouchable foreign cash - take a deep breath is set to be repatriated.
In other words, management's action shows that when it's our money, it needs to be held
conservatively and reserved for "strategic flexibility." But when it's their money, they don't need so
much rainy day cash and they'd like to see the balance sheet working harder to generate the
maximum return on their equity.
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