Microsoft in talks to join any Dell deal Microsoft is in talks to join the investor group considering a buyout of computer maker Dell, according to a person familiar with the situation. Financing for the deal, which would rank among the largest buyouts ever, continues to evolve as Dell founder and chief executive Michael Dell and private equity firm Silver Lake Partners work to find co-investors for the transaction, which could be worth as much as $25bn. In the latest iteration, Microsoft would be a part of the capital structure, contributing over $1bn in either mezzanine financing, equity, or both, this person said. Microsoft is a large supplier to Dell and would have an interest in stabilising the company, which has seen its share price steadily decline over the years. Yet its investment could complicate relations with other PC vendors, another person following the situation said. "They have unlimited cash and if they went into the junior debt, they would have attractive high single-digit returns," said one credit investor. They would also have a strategic toehold. News of the potential buyout came as Dell shares traded near a 52-week low, leading many deal watchers to wonder if Mr Dell was orchestrating a buyout at a particularly opportunistic time. Investors who bought Dell shares when they were much higher are expected to be less than enthusiastic about the proposed go-private transaction. Dell's share price, which closed at $13.12, remained below the expected offer price of between $13.50 and $14 a share, while many of the so-called risk arbs who bet on the outcome of bids remained on the sidelines. That reflects their sense that at this point the upside appears limited. Many credit investors who would be the object of calls from the banks arranging the deal say they expect the cash flow to go down over time. "There is a big buggy whip aspect to this deal," said one such investor. While the special committee Dell established is expected to allow for a period when other potential buyers could step forward, the likelihood of a rival bid emerging is slight, given the partnership between the company's eponymous founder and Silver Lake Partners. JPMorgan is advising Dell's board on the deal, and a special committee of the board has been set up in an attempt to avoid conflicts of interest. Evercore, the boutique investment bank, is advising the special committee, people familiar with the process said. The possible buyout of Dell comes as the computer maker changes strategy, working to transform from a hardware maker into a supplier of enterprise services. As part of that evolution, Mr. Dell has spent upwards of $10bn on acquisitions whose value is still not certain.