Cowen Cuts Price Target on VMware (VMW) Following Dell's Announced Acquisition of EMC

Dell said to face $60 billion in total debt with EMC (EMC) deal - Bloomberg

October 12, 2015 1:35 PM EDT

Dell said to face $60 billion in total debt with EMC (NYSE: EMC) deal - Bloomberg

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Wide Merger Arb Spread Has EMC (EMC) Investors Frustrated

October 12, 2015 1:21 PM EDT

As widely reported last week, EMC (NYSE: EMC) agreed to be acquired by Dell for $33.15 per share, or $67 billion. The deal is made up of $24.05/share in cash and 0.111 shares of a new VMware (NYSE: VMW) tracking stock for each share of EMC currently held.

Notably, the spread on the deal is substantial. With the drop in VMware stock, the deal is currently worth $31.82/share to EMC shareholders yet the stock is trading at $28.16, giving it a 13% spread. Normally deals trade with spreads of... More

Mizuho Securities Downgrades VMware (VMW) to Neutral Following Dell/EMC Deal

October 12, 2015 10:38 AM EDT

Mizuho Securities downgraded VMware (NYSE: VMW) from Outperform to Neutral with a price target of $75.00 (from $95.00) after Dell agreed to acquire EMC.

Analyst Abhey Lamba commented, "We are downgrading the stock to Neutral from Buy, and cutting our PT to $75 from $95. We think... More

Moody's Places Dell's Ratings Under Review Following Move to Acquire EMC (EMC)

October 12, 2015 10:25 AM EDT

Moody's Investors Service ("Moody's") has placed all ratings of Dell Inc. ("Dell") and Dell International (a debt issuing subsidiary of Dell Inc.), including the corporate family rating ("CFR") of Ba2, under review for upgrade following Dell's announcement that it signed a definitive agreement to acquire EMC Corporation for $24.05 per share in cash in addition to tracking stock linked to a portion of EMC's economic interest in the VMware, Inc. for a total transaction value of about $67 billion.

Dell plans to finance the cash portion of the transaction price through a combination of new common equity, new debt... More

OpCo Thinks That Everybody but Citrix Benefits from the Dell/EMC Deal

October 12, 2015 9:53 AM EDT

Oppenheimer analyst, Ittai Kidron, thinks the Dell/EMC deal could have a far reaching impact on the storage and networking industries, affecting both large and small players. His thesis revolves around the following 4 points:

When it comes to storage, Cisco (NASDAQ: CSCO), a serial acquirer has pursued a partnership strategy but that may change. Cisco now needs to... More

S&P Affirms Corp. Credit Rating on Dell Amid Move to Acquire EMC (EMC)

October 12, 2015 9:41 AM EDT

Standard & Poor's Ratings Services today said it affirmed its 'BB+' corporate credit rating on Dell Inc. The outlook is stable.

At the same time, we placed our 'BBB' rating on the senior secured credit facilities of Dell International LLC, a wholly-owned subsidiary of Dell, on CreditWatch with negative implications. We also placed our 'BB+' rating on Dell's senior unsecured notes on CreditWatch with negative implications. Details of the financing terms, including the amount of total debt issuance, the amounts of secured compared to unsecured debt, and the amounts to be issued at each borrowing entity (with possible... More

Pre-Open Stock Movers 10/12: (ESPR) (OREX) (EMC) Higher; (MHR) (SIEN) (LLY) Lower (more...)

October 12, 2015 9:31 AM EDT

Magnum Hunter Resources (NYSE: MHR) 37.9% LOWER; announced that it has hired PJT Partners LP (NYSE: PJT) (the combination of Blackstone's advisory businesses and PJT Capital LP, a global financial advisory firm founded by Paul J. Taubman), as financial advisor, and Kirkland & Ellis LLP, as special legal advisor, to advise management and the Company's Board of Directors regarding potential strategic alternatives to enhance liquidity and address the Company's current capital structure. As previously disclosed, the Company has actively worked to manage its balance sheet,... More

Dell to Acquire EMC Corp. (EMC) for $33.15/Share

October 12, 2015 7:05 AM EDT

(Updated - October 12, 2015 7:11 AM EDT)

Together with its owners, Michael S. Dell, founder, chairman and chief executive officer of Dell, MSD Partners and Silver Lake, the global leader in technology investing, will acquire EMC Corporation (NYSE: EMC), while maintaining VMware as a publicly-traded company.

Under the terms of the agreement, EMC shareholders will receive $24.05 per share in cash in addition to tracking stock linked to a portion of EMCs economic interest in the VMware business. Based on the estimated number of EMC shares outstanding at the close of the transaction, EMC shareholders... More

VMware (VMW) Prelim. Q3 Revenue, EPS Outpace Expectations

October 12, 2015 7:03 AM EDT

VMware (NYSE: VMW) announced preliminary financial results for the third quarter of 2015.

Revenues for the third quarter are expected to be $1.672 billion, an increase of 10% from the third quarter of 2014, or an increase of 14% in constant currency. "I'm pleased with our overall Q3 results, with total revenue expected to exceed the high end of our guidance range," said Jonathan Chadwick, chief financial officer, chief operating officer and... More

FBR Sees EMC/Dell Deal Happening Around $33/Share (EMC) (VMW)

October 12, 2015 6:35 AM EDT

FBR is out with commentary on EMC (NYSE: EMC) amid recent speculation that Dell might move to acquire the company.

Analyst Daniel H. Ives commented, While the initial price talk of $28$30 per EMC share was met with massive frustration and angst among EMC investors, it appears a more enticing deal close to $33 is now on the table and would be met with "much better" reception from the Street, in our opinion. It also appears a tracking stock of... More

Dell to use VMware to help pay for EMC deal: sources

October 9, 2015 4:42 PM EDT

By Greg Roumeliotis

(Reuters) - Dell Inc is planning to use equity in cloud software company VMware Inc (NYSE: VMW) to help pay for its acquisition of EMC Corp (NYSE: EMC) in a deal valuing the data storage company at more than $55 billion, according to people familiar with the matter.

While... More

UPDATE: Dell to Offer EMC (EMC) $33/Share Including VMware (VMW) Tracking Stock - Bloomberg

October 9, 2015 4:31 PM EDT

(Updated - October 9, 2015 4:35 PM EDT)

Dell is offering to acquire EMC (NYSE: EMC) for about $33 per share, including the value of tracking stock in VMware (NYSE: VMW) that would be issued to shareholders, according to... More

UPDATE: Dell said offering EMC (EMC) $27.25/share plus tracking stock - Re/code

October 9, 2015 3:45 PM EDT

(Updated - October 9, 2015 3:47 PM EDT)

Dell said offering EMC Corp. (NYSE: EMC) $27.25/share plus tracking stock, according to Re/code.

Shareholders would also get stock in VMWare (NYSE: VMW) as part of the deal.

In total, the value of the offer is arond $50 billion.

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Drexel Hamilton Starts VMware (VMW) at Hold

October 9, 2015 2:06 PM EDT

Drexel Hamilton initiated coverage on VMware (NYSE: VMW) with a Hold rating and a price target of $80.00.

For an analyst ratings summary and ratings history on VMware click here. For more ratings news on VMware click here.

Shares of VMware closed at $77.30 yesterday.

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UPDATE: Dell May Pay More Than $30/Share for EMC Corp. (EMC) - CNBC's Faber

October 9, 2015 1:48 PM EDT

(Updated - October 9, 2015 1:51 PM EDT)

Dell may pay more than $30 per share for EMC Corp. (NYSE: EMC), according to CNBC's Faber. A deal is expected early next week. Dell would keep control of VMware (NYSE:... More

Anything Below $30/Share Likely Rejected by EMC (EMC) Shareholders - Summit Research

October 8, 2015 3:03 PM EDT

Summit Research is out with commentary on speculation that Dell might move to acquire EMC (NYSE: EMC).

Analyst Srini Nandury noted that any deal below $30 per share would likely be voted down by shareholders. The analyst broke down the following:

Legacy Storage Business is worth $8.25 per share: The legacy storage business consists of Mid-range VNX, VNXe, Data Domain, VMAX, Data Protection software such as Legato, Avamar etc. EMC is the market leader in both NAS and... More

EMC (EMC) Purchase by Dell Would Make Sense, Says Deutsche Bank

October 8, 2015 2:14 PM EDT

Deutsche Bank maintained a Buy rating on EMC (NYSE: EMC) with a price target of $30. Earlier report said Dell is in discussions to acquire EMC, though it is unclear if this would be a full or partial takeover. In the view of analyst Sherri Scribner, a purchase by Dell would make sense.

"Speculation of EMC as a take-out candidate has been common for the past few years, and while... More

Streetinsider.com's Hot Lunchtime Reads 10/8: (EBAY) (P) (TSLA) (INTC)

October 8, 2015 12:16 PM EDT

The following is a list of notable articles to help get you through the lunch hour:Analyst Has 'Mixed Feelings' on Pandora's (P) Ticketfly Acquisition ->... More

Dell Said to Approach Banks for EMC (EMC) Buy; May Seek to Raise ~$40B

October 8, 2015 11:51 AM EDT

(Updated - October 8, 2015 11:55 AM EDT)

Dell is said to have approached several banks about raising funds for an acquisition of EMC Corp. (NYSE: EMC), according to Bloomberg. The company is looking to raise about $40 billion and has spoken with JPMorgan,... More

EMC (EMC) Worth $30+ Takeover or Not, Raymond James Says

October 8, 2015 11:27 AM EDT

Raymond James analyst Brian Alexander reiterated a Strong Buy rating and $32 price target on EMC (NYSE: EMC) amid speculation of a potential merger with Dell.

"While reports lacked specifics and have not been confirmed by the companies concerned, EMC's current market cap of ~$50 billion and enterprise value of +$40 billion suggest that the inclusion of VMware would be... More

EMC/Dell Rumors May Be Another False Alarm, Bernstein's Sacconaghi Says (EMC) (VMW)

October 8, 2015 8:14 AM EDT

Bernstein analyst Toni Sacconaghi weighed in on EMC (NYSE: EMC) amid the various rumors surrounding the company and Dell. While the WSJ story about a merger between the two is the main focus, there are a couple other rumors making the rounds.

The analyst notes New York Times claimed that "Dell is in advanced talks to acquire EMC." Additionally, the tech news outlet Re/code stated that EMC was "looking to specifically sell its VNX data storage business" to Dell.

Sacconaghi said they struggle... More