UPDATE 2-Michael Dell coughs up $750 mln cash to buy out Dell
* Michael Dell putting up $500 mln, his investment firm $250 mln
* Termination fee up to $750 mln possible
* Deal will target the repatriation of $7.4 bln cash from abroad
By Edwin Chan
SAN FRANCISCO, Feb 6 (Reuters) - Michael Dell and his investment firm are ponying up $750 million in cash toward the $24.4 billion purchase of Dell Inc to help bankroll the largest private equity-backed buyout since the financial crisis.
The Dell founder and CEO this week struck a deal to take private the company he created out of a college dorm room in 1984, partnering with private equity house Silver Lake and Microsoft Corp.
Michael Dell will contribute $500 million of his own cash, and MSDC Management - an affiliate of his investment vehicle, MSD Capital - will contribute another $250 million, according to a company filing on Wednesday.
Dell Inc also said it is targeting the repatriation of $7.4 billion of cash now parked abroad to help finance the deal. That may dismay some shareholders, as a hefty tax is usually levied on cash brought back from overseas.
The deal, which ends Dell's rocky 24-year run on the Nasdaq just as the once-dominant PC maker struggles to revive growth, is contingent on approval by a majority of shareholders -- excluding Michael Dell himself. Continued...