Dell 'struggling to raise funds for EMC gobble'

Dell's US$67bn mega-merger with EMC could be in trouble, with bankers reportedly having trouble raising the funds to foot the acquisition. The takeover, which was announced in October, looked like plain sailing, but the falling stock market, and in particular the crash in tech stock prices, appears to have had a knock-on …

[Anonymous Coward]

Surely they could ask the US gov for a loan...?

The US gov has form propping up "too big to fail" monstrosities, at taxpayer expense. They'd be all over this!

[Anonymous Coward]

Re: Surely they could ask the US gov for a loan...?

You'rd assuming that merged company would ever succeed in the first place!

[Anonymous Coward]

Re: Surely they could ask the US gov for a loan...?

No, I'm really not. The banks they bailed out didn't all magically succeed after all...

[x 7]

I LOVE it when a plan doesn't come together...........

[The little voice inside my head]

Banks...

Making Dell look bad, does it mean that these banks do not have liquidity for making these transactions? Why does Dell need to raise funds? It is scary that JP Morgan looks like they are money empty...

[allthecoolshortnamesweretaken]

Re: Banks...

Investment banking (or merchant banks) doesn't work quite that way.

Dell (the company) needs to raise funds because it doesn't have that much cash just lying about.

Ditto Dell (the guy himself), plus why should he pay this out of his own pocket?

Banks don't have money (or at least not that much) per se. It's not their job to hoard money, it's their job to route money, charging for the service. Jimmy Steward's speech in 'It's a wonderful live' is quite a good explanation, actually. Or all the jokes about the Irish bailout.

[Anonymous Coward]

Sorry.

I'm also sorry to hear about all of the ScaleIO reps who have been let go.

Looks like it's pink slip season...

EMC is the ENRON of Tech.

[Anonymous Coward]

Drowning rat, meet sinking ship...

Maybe if they can get Cisco and HP on board, we can have all the "dead men walking" together in one place to reminisce about the days of 80% profit margins while the cloud puts them out of their misery.

[x 7]

if the deal doesn't go ahead.......who has to pay whom compensation?

could be the money can't be found for that and then we start looking at bankruptices..........

[Anonymous Coward]

It seems crazy to even propose a deal which will take a year plus to close. In the mean time, how many customers will EMC/VMware lose during the period of uncertainty? That is on top of those it will lose anyway because they don't like the idea of Dell making their tier one storage or a server provider controlling VMware. The IT industry is moving fast and both of these companies will be waiting to see what happens next for a long time while their competitors make moves.