Dell shares surge as private equity takeover talks emerge

Shares in troubled PC maker Dell have surged after reports surfaced the company is in private equity buyout talks.

Bloomberg reports senior executives from the company are in talks with private equity firms TPG Capital and Silver Lake about taking the company private.

However, the deal could fall apart if the companies are not able to raise the required capital or cannot agree on an exit strategy.

A private equity would allow Dell to refocus its operations from traditional PCs towards tablets and other mobile devices without the pressures of being a publicly traded company.

The news comes as the PC industry struggles against growing demand for smartphones and tablets powered by Apple’s iOS and Google’s Android platforms.

TPG Capital is best known to Australian investors as the private equity firm that was linked to an unsuccessful takeover attempt of troubled surfwear giant Billabong in June last year.