Dell just went private for $25 billion two short years ago, in the midst of sucking some serious wind, operationally. Tonight they announced they agreed to terms to acquire EMC for a transaction worth $65 billion, making it the largest tech takeover ever.
Under the terms of the deal, Dell will pay the equivalent of $33.15 a share in a complicated transaction involving both cash and a special kind of stock. That price is about 27 percent higher from where EMC’s shares were trading before news of the deal first emerged.
You’ve got to love financial engineering. This deal bodes well for the overall health of the tech sector, as it pertain to liquidity in getting financing for deals.
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I’m not convinced that a “complicated transaction” bodes well for liquidity. Perhaps Dell is grasping at straws. Biggest transaction ever would make a nice bell ringer. As in “ring the bell at the top”. Ding!
This sounds like a headline from 1999.