Technology firm Dell buyout deal imminent, according to reports

According to Reuters, the tabled deal could be worth as much as $24.4 billion. Dell, who is currently chief executive of the company, will take majority ownership with Microsoft and private equity firm Silver Lake Partners as minority investors, the report said.

If the deal goes through, it would be the largest leveraged buyout since the global recession hit in 2008, according to reports. Becoming a private company would enable Dell to address the global shift from PC sales to mobile devices without having to report to shareholders or the stock exchange.

Founded in 1984, Dell has been a publicly-listed company since 1988. It is currently the second largest US computer manufacturer, behind Hewlett-Packard.

Technology law expert Christopher Mann of Pinsent Masons, the law firm behind Out-Law.com, warned that any deal could lead to a wave of contract renegotiations if customers had 'change of control' clauses in their contracts. These give parties to a commercial agreement enhanced protection if the controlling shareholding of the other party is transferred. Michael Dell currently owns a minority stake in the publicly-listed company worth almost 16%, according to reports.

"It would be interesting to know whether Dell's customers have been considering their 'change of control' rights," Mann said. "The Dell deal could trigger a wave of activity if its customers are keen to exit or re-negotiate their existing contracts."

UPDATE 05/02/13: Dell announced today that Michael Dell and investment firm Silver Lake have made an offer to take the company private by buying all of Dell's shares not held by Dell and certain members of management.