The Texas economy is one of the most robust in the world. Wildly profitable companies and ingenious entrepreneurs call this state home, and what happens here influences businesses around the nation. Here’s a slice of the profits, losses, big deals, and backroom decisions happening across Texas this week.
Buy Low, Dell High
After an up-and-down 2012, Dell is starting out 2013 with an eye toward a fresh start. The Wall Street Journal reported this week that CEO Michael Dell is in talks with an investment group to take the company private in a “leveraged buyout at around $13 to $14 a share.” Money for the deal—reportedly worth between $22 billion to $25 billion in equity—would come from Silver Lake Partners, Dell himself, and one or more other investors, according to the Journal.
Going private would give the Round Rock–based computer empire more latitude in “reorienting the company around hardware, software and services for businesses, without having to worry about keeping up quarterly earnings during the process,” the Journal reports.
The Bottom Line: Investors responded favorably to the proposed buyout, driving up Dell’s share price by thirteen percent on Monday.
Should I Stay or Should Citgo?
The State of New Hampshire agreed this week to dismiss Citgo Petroleum Corp. from an environmental lawsuit that has dragged on for nearly a decade. In 2003 New Hampshire accused Houston-based Citgo and several other oil companies of contaminating its groundwater with the gasoline additive MTBE, incurring $816 million in cleanup costs, according to Businessweek.
Based on Citgo’s market share, the state could seek