SAN FRANCISCO (MarketWatch) -- Dell
Inc. was upgraded to a neutral rating by Citigroup
on Tuesday, following the formal announcement of a private-equity buyout deal with CEO Michael Dell and Silver Lake. The broker cited the "high likelihood of deal completion" as the reason for removing its sell rating from the PC maker's stock. Analyst Jim Suva wrote that "with the exception of 1-2 large institutional shareholders, getting majority shareholder approval seems doable given the 25% share price premium," and added that the deal implied a premium valuation over close rival Hewlett-Packard Co. . "Our work suggests that bank financing commitments are solid given the appetite in the market for high-yield debt," he wrote. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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