Report: Dell Acquisition Talks With Quest Software Break Down

CNBC.com

on Friday afternoon that deal talks between Dell

and Quest Software

have broken down. According to the report, "negotiations for Dell, Inc. to acquire Quest Software have broken off but lower-level representatives from both companies remain in touch." Previously, Dell had offered to buy the company for $23 to $26, but that deal fell apart last month. The CNBC source said that the talks had been tenuous, but did not specify what the reason was for the end of serious negotiations. Dell was willing to pay all cash for Quest. Back in March, Quest had agreed to a $23 per share buyout from Insight Venture Partners, but the company said that it received multiple offers during a so-called "go-shop" period where they could solicit competing bids. While Insight has the right to match rival offers, it is unclear whether it will be successful in acquiring Quest. If the company does decide to reject the Insight deal in favor of an acquisition by another suitor, a special committee would have to determine that the competing offer was superior. Quest's board has retained advisers to appraise all of the offers it has received. During Friday's trading session, QSFT shares fell 5% to $23.74 on the news.