Dell shares soar on talk of going private
NEW YORK (AFP) - Dell shares soared on Monday as rumours spread that the Texas-based computer maker was exploring the option of going private with the help of equity firms.
Dell shares were up more than 12 per cent to US$12.27 as the close of the trading day neared on the Nasdaq exchange, giving the company a stock-based value of nearly US$22 billion (S$26.9 billion).
Unconfirmed word reached investors that Dell was in talks to delist itself from the exchange and sell itself into private hands, according to Meeschaert Capital Markets president Gregori Volokhine.
Dell declined to comment on what it referred to as rumour and speculation. The stock surge was attributed to belief in the market that taking the company private would require buyers to pay a "significant premium" to get shares, Mr Volokhine said.