With Blackstone group earlier counter offered to buy Dell, the group citing poor PC sales today confirmed that it is withdrawing its bid to acquire Dell. The group led by Blackstone in a formal letter addressed to the Special Committee of the Board of Directors at Dell had found number of “significant adverse issues” with the company.
A Blackstone entity managing the bid, the Boulder Acquisition Group president, Chinh Chu said the results were “inconsistent with management’s projections for modest industry growth.” He also added that Blackstone was unhappy over Dell’s revised operating income projections for the current fiscal year which now stands at $3 billion from earlier projected $3.7 billion.
“On behalf of Boulder Acquisition Corp., Blackstone Management Partners, Francisco Partners, Insight Venture Partners, and Riverwood Capital, I regret to inform you that we will likely not pursue this opportunity,” Chu said.
