back to article Dell melts in face of investor dissent, ups offer for Class V stock

Dell Technologies has upped the buy price for Class V stock to win support from shareholders that threatened to block the proposed transaction and hinder the company’s return to the US stock market. The final per share offer is for $120 in cash, subject to an aggregate $14bn cap, or to swap each unit for between 1.5043 and 1. …

  1. HmmmYes

    Mikey spends way too much time with Wall street types.

    Given half the chnace, theyll piss every cent away on fees for 'clever' schemes that blow up at a later date.

    VMware is a high margin, high growth business.

    Dell - the hardware bit - is mainly low margin low growth.

    If I wa a VM sahre holder Id fucked oof that Mikey was taking my equity and pumping into a low margin busienss like Dell. And paying millions in fee to Wall street for this.

    MIkey and Wall street spent a fortune taking Dell private.

    Trun that into a high margin, high grwoth business and I might cosnider merging VMware.

    This is nothing more that the biggest idiot being able to leverage up o ruin two businesses.

    1. Gene Cash Silver badge

      Elmer, is that you?

      Do you know the number to the local stroke hotline?

    2. Anonymous Coward
      Anonymous Coward

      Micheal Needs to do This or Fold

      The recent change in US tax laws are also forcing Micheal's hand.

      In order to buy EMC he needed to raise capital and cut costs to do it. Borrow, Vmware DVMT stock, sell off some assets. Achieve cost reductions at EMC by reducing the workforce, eliminate products [think six disk lines, that hammer will fall in 2019], eliminate pay raises and stock options, and move travelers out of Marriott class hotels and into Holiday Inns, to name a few.

      As of February 2018, Dell Technologies had nearly $53bn in debt. And was deducting $2bn a year in interest. New tax laws restricting interest deductions has the potential to turn a loss into a taxable profit, further straining company finances. Dell's finance people mysteriously claim that a lower corporate tax rate offsets the deduction. But if you are losing money, you pay no taxes; so who are they crapping?

      Check out https://www.nytimes.com/2018/02/02/business/dealbook/is-dells-debt-load-pushing-it-into-a-deal.html

      Certainly there are other dynamics going on, cashing-out, nervous bond investors, and the loss of hardware sales as customers move to the cloud. Dell Technologies will likely be a smaller company in 5 years. And eventually Dell could be another failed company bump in the road like once industry titans like DEC and Xerox.

      Good luck Michael.

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