Submission + - Dell to buy EMC for $65 Billion (nytimes.com)
im_thatoneguy writes: After days of rumors, the New York Times is reporting that Dell will in fact be acquiring storage (and VMWare parent) company EMC in a record $65B deal being financed by a consortium of banks.
Under the deal Dell will pay $33.15 a share which represents a premium even on top of EMC's current value which had already jumped on initials rumors of a $50 acquistion last week. However, insiders say the deal won't be a straight forward cash buy-out of stock holders. Instead, EMC investors will receive about 70% in cash and the remainder in what's called a Tracking Stock which will track the performance of just the VMWare Division within the new organization.
Under the deal Dell will pay $33.15 a share which represents a premium even on top of EMC's current value which had already jumped on initials rumors of a $50 acquistion last week. However, insiders say the deal won't be a straight forward cash buy-out of stock holders. Instead, EMC investors will receive about 70% in cash and the remainder in what's called a Tracking Stock which will track the performance of just the VMWare Division within the new organization.
