News Special

Dell to announce EMC merger

Latest Update: October 12, 2015 | 117 Views

One of the largest tech mergers in history will be announced on Monday morning. It seems to be happening.

EMC is planning to announce at 7 a.m. on Monday that it has agreed to be acquired by privately-owned Dell, according to multiple sources.

The resulting company could be worth around $75 billion. The merger has been orchestrated by the two principles and Silver Lake, the private-equity firm that helped take Dell private in late 2013.

Current discussions point to a price of $33 per EMC share, plus another $7 per share related to VMware as a “tracking stock,” sources tell Fortune.

EMC shares closed trading Friday at $27.86, and were nearly $29 in the aftermarket on Sunday evening.

Elliott Management, the activist investor that has been pushing for changes at EMC, including the sale of EMC’s stake in VMware, is not believed to have been in the room during last-minute discussions between the two sides.

But, EMC’s board, which was reportedly meeting Sunday to hammer out details, does include two Elliott-friendly directors.

In addition, Reuters reports that EMC is pushing for the inclusion of a ‘go-shop’ provision that would allow the storage giant to seek superior bids from other parties.

That provision also would enable EMC to pay a lesser break-up fee to Dell if an alternate deal comes to fruition.

Neither EMC nor Dell has returned requests for comment.


Top of the Hour