Shares of Dell (NASDAQ:DELL) soared more than 14% Monday afternoon on a report that the struggling PC maker is in talks with at least two private-equity firms over a potential buyout.
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According to Bloomberg News, the takeover talks are preliminary and could fall apart if financing can't be lined up.
Several large banks have already been contacted about providing financing for a potential buyout, Bloomberg reported.
It's not clear what private-equity firms are interested in Dell nor what the price tag on such a deal would be, but the company's market cap stands at north of $21 billion.
"We do not comment on rumor or speculation," a spokesperson from Round Rock, Tex.-based Dell told FOX Business.
Dell's stock soared double-digits on the M&A report. Trading was briefly halted as the stock hit a circuit breaker.
The report comes as Dell, which has been the subject of buyout rumors in the past, continues to struggle in the slow economy and amid a shift in the tech world away from PCs in favor of tablets and smartphones.
In November Dell disclosed a deeper-than-expected 47% tumble in third-quarter profits amid slumping consumer sales. The company’s revenue dropped 11% to $13.72 billion, missing estimates, and its gross margins contracted to 20.9% from 22.3%.
Last year Dell also unveiled its first ever quarterly dividend of 8 cents a share.
Dell surged as high as $12.83 Monday afternoon and was recently trading up 11.31% to $12.11, trimming its 12-month slump to about 23%.
FOX Business reporter Jennifer Booton contributed to this report.