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Dell's Debt-Laden Leveraged Buyout

Whispers from the Street: Dells Wastes Million in Buyout Plan

Many people are at a loss to explain Dell's (DELL) leveraged buyout and how exactly the math will add up in the $24.4 billion takeover bid which is the largest this side of the financial crisis.

Very few people or even analysts seem worried that the consortium group organized by founder Michael Dell, Silver Lake Partners, and Microsoft(MSFT) will not happen, even though there are concerns that a mere $13.65 per share cash payout gives only a little payment to Dell's shareholders.

Those who are shaking their heads back and forth are trying to make some sense of the numbers and are stunned after hearing that the three large rating agencies (Standard & Poors, Fitch Ratings, and Moody's) stand ready to downgrade Dell's stock to junk.