Posted by on
Categories: DELL Dell Technologies EMC VMware

It may be the least dramatic $60 billion deal in business history. This week, #EMC Corp. shareholders will head to Hopkinton to give their verdict on the storied data storage company’s proposed sale to #Dell Inc. And despite its enormous size and complex structure, almost nobody watching the deal expects surprises, drama, or hiccups.

“They are operating as if the deal is done,” said Steve Duplessie, a senior analyst at Enterprise Strategy Group in Milford. “I don’t know anybody that’s against it at this point.”

That’s a noticeable change from this winter, when a broader market slowdown made some investors wonder whether Dell would be able to borrow nearly $50 billion to finance the deal.

But Dell’s massive bond sales found an eager market, thanks to low yields on government debt, which has investors searching for higher-yielding securities. Most government regulators have already approved the sale. And recently, a trio of shareholder advisory firms recommended that EMC stockholders vote yes on the buyout.

If EMC shareholders give their approval on Tuesday and China’s regulators don’t block the sale, little will remain other than completing the merger paperwork, a process expected to be completed by the fall.

In a research note titled “Time to say goodbye,” a Macquarie Group Ltd. analyst, Rajesh Ghai, called Dell’s buyout offer “the best possible outcome for EMC shareholders,” saying EMC shares are probably worth about $20, compared to Dell’s cash offer of $24.05 per share.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.