Private equity outfit Silver Lake Partners is trying to finalize a bidding group to take the world's No. 3 PC maker private, and has opened discussions with potential equity partners, sources familiar with the matter have said.
Microsoft, which accelerated its foray into computer hardware in 2012 with the launch of the Surface tablet, will provide the capital in the form of mezzanine financing according to CNBC, which is a hybrid of debt and equity.
Microsoft and Dell both declined to comment on the CNBC report. Shares in Dell gained climbed 2 percent to $13.08 in late morning trade.
(Reporting by Edwin Chan; Editing by Gerald E. McCormick and Tim Dobbyn)