Tuesday, December 15, 2015

Dell Looks to Sell Perot Systems for More than $5 Billion | Re/code

Also see VMware Walks Away From Virtustream Joint Venture With EMC (Re/code)

"The sale could be a key component of Dell’s deal to buy EMC. Selling Perot would help raise cash Dell needs to pay down debt after it closes on its proposed acquisition of the storage company EMC. Dell and its co-owner, the private equity firm Silver Lake, offered a combination of cash and tracking shares to buy out EMC in a deal valued at $67 billion when it was announced on Oct. 12. But there are still significant issues with the deal, given the complexity of the proposed deal structure. In addition to taking on a combined $50 billion in debt, Dell and Silver Lake have proposed to issue tracking shares linked to VMware, a software subsidiary of EMC, to help finance the EMC purchase. A 60-day go-shop period during which EMC sought offers superior to Dell’s expired early Saturday morning."
Dell Looks to Sell Perot Systems for More than $5 Billion | Re/code
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