1/11/2024 0 Comments Emc stock buyout![]() ![]() Bernstein has an Outperform rating and a $30 target for EMC and a Market-Perform rating and $65 target for VMware.ĭisclosure: The author holds no position in the stocks mentioned. Sacconaghi is convinced that the deal makes sense and will go through. Dell Technologies will shed its 81 percent stake in. Second, Sacconaghi sees a 13 percent “deal discount,” reflecting the opportunity cost of holding EMC shares and concerns that the deal might not close. 58 PC pioneer Michael Dell is set to cap his climb back to the top of the computing world on Monday with one of the largest corporate spin-offs. First, tracking stocks typically trade to a discount to public shares, which could be responsible for a 20 percent lag in VMware valuation. According to Sacconaghi, there are two reasons for this lag. Dell agreed to pay EMC shareholders 24.05 a share as well as 0.111 shares of a tracking stock. Under the terms of the proposal, Dell would own less than 30 percent of VMware, but would control 97 percent of voting power.Įven with the weakness in VMware factored in, EMC remains undervalued at current levels. is expected to mark its buyout of EMC Corp. However, VMware shares are down more than 18 percent since the deal was announced on fears surrounding Dell’s influence on the company moving forward. More than 27 percent of the proposed $33.13/share EMC valuation when the Dell deal was announced came from the 0.11 shares of VMware tracking stock included in the deal for every share of EMC stock. The majority of EMC’s sluggish price action is likely due to the weakness in VMware’s stock since the announcement of the deal. Related Link: Why Nimble Storage, Pure Storage Are In Free Fall EMC investors will receive 24.05 per share of cash AND shares of a tracking stock for VMWare (VMW), equivalent to. took a closer look at what’s going on with EMC. ![]() However, EMC shares continue to trade about 24 percent below the proposed buyout price. Letter to Clients Exhibit (a)(1)(E) Offer to Purchase for Cash All Outstanding Shares of Common Stock of Isilon Systems, Inc. (including fractional shares settled in cash) by an EMC shareholder. It’s been more than a month since EMC announced that it will be acquired by Dell for about $33.13/share. The aggregate tax basis of the Class V Common Stock received in the Section 351 Exchange.
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