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KKR teams up with Dell-linked fund in offer for Germany's GfK

March 04, 2017 at 04:04 pm EST

FRANKFURT (Reuters) - A fund managed on behalf of American IT entrepreneur Michael Dell has agreed a deal to take a stake in the investment vehicle that private equity firm KKR is using to invest in German research firm GfK SE.

MSD Capital built up a stake of just over 10 percent in GfK, potentially throwing into doubt KKR's plans to take over the German company together with GfK Verein.

KKR said in a statement late on Friday it has agreed to acquire around 3.7 million shares, equivalent to a 10.07 percent stake in GfK from three shareholders. The three shareholders are funds managed by MSD Capital and MSD Partners. MSD Capital is the private investment firm that manages the capital of Michael Dell and his family.

KKR will pay around 50 million euros (43.19 million pounds) for a portion of the shares, while around 6.89 percent of the shares will be exchanged for a stake in the investment vehicle through which KKR is investing in GFK, according to the statement.

The deal means KKR and GfK Verein have together passed the 75 percent threshold they needed for the 43.50 euro per share offer for GfK to succeed.

The takeover values the German company at about 1.69 billion euros.

($1 = 0.9416 euros)

(This version of the story has been corrected throughout to show deal agreed by fund managed on behalf of Dell, not by Dell himself)

(Reporting by Alexander Huebner; Writing by Victoria Bryan; Editing by Alexander Smith)

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Michael Dell

Michael Dell is the founder of Dell Inc., the second largest computer manufacturer in the world. With a net worth of about $ 14.6 billion, the Texas billionaire was the 44th richest man in the world according to Forbes 2011.

During the preparation of his degree in physics at the University of Texas, at Austin. Michael Dell spends all his time to the creation of PC's Limited, an IT company. PC’s Limited only manufactures custom-built computers. In 2004, Michael Dell founded the company Dell with only $ 1000.

Anxious to streamline its expenditures, Michael Dell develops an innovative strategy which, by assembling customized computers (only made-to-order) ensures to avoid costly and unnecessary inventory management. The concept really works so Michael Dell leaves the school to devote to the launch of Dell Computer Corporation. With a turnover of $ 35 billion and $ 2 billion of profits in 2002, Dell generates enormous profits.

In 2004, Michael Dell gives up his seat to Kevin Rollins as CEO but keeps the position of Chairman of the Board of Directors.

Taking advantage of the internet boom, Dell realizes nearly 50% of its business online. Every day, the company generates about $ 40 million.

But in 2007, Dell makes a succession of errors; delivery time are not guaranteed anymore, the manufacturer has to bring back nearly 4.2 million of defective batteries and HP, the main Dell’s competitor takes the first place. Michael Dell fires Kevin Rollins and takes charge.

The founder of the Texas firm manages to put Dell in the good direction but nevertheless his fortune markedly reduces because of the crisis and the decline in Dell stock prices.

Following the example of Bill Gates, Michel Dell has created “Michael and Susan Dell Foundation”, a foundation committed in education and health.

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Linked companies
Dell, Inc. Dell, Inc. Computer Processing HardwareElectronic Technology Dell, Inc. engages in the manufacture of electronic devices. Its products include laptops, desktops, tablets, thin clients, printers, monitors, software, workstations and accessories. The company was founded by Michael Saul Dell on February 1, 1984 and is headquartered in Round Rock, TX.	Chief Executive Officer
DFO Management /Private Equity/ DFO Management /Private Equity/ Investment ManagersFinance DFO Management /Private Equity/ (DFO) is a private equity subsidiary of MSD Capital Management LLC founded in 1998 by Glenn Robert Fuhrman and John Cartwright Phelan. The firm is headquartered in New York.	Founder