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Technology Stocks : Dell Technologies Inc.

DELL 119.41

-2.7%

Nov 19 3:59 PM EST

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To: gc who wrote (110401)	3/20/1999 4:04:00 PM
From: VICTORIA GATE, MD	Read Replies (1) of 176387

Dell and IBM - Investment Ideas By The-Adviser.com - Saturday, 3/20/99 New York - One of the benefits of being independent is that we are not subject to those investment banking confidentiality agreements. The story was broken by The-Adviser.com although we understand that Merrill Lynch has apparently prepared a brief report that is now being circulated. Channel reaction with IBM went so well and so smooth - we understand that both parties are now considering an acquisition/merger/alliance. IBM is a service company that needs revenue growth. Dell is simply the best PC manufacturing company and has growth. The parties see synergies, opportunities and apparently are getting along. Although we continue to research additional facts and obtain confirmation on several issues, we feel safe to say that the below business issues have been sorted out. The PC business would operate as a stand-alone business. The IBM manufacturing and marketing groups would be under the umbrella of the "OldCo" Dell. Exact structure has not yet been defined. Michael Dell would report directly to Lou Gerstner and be responsible for all PC business and marketing. He would also be named as successor to Lou who will continue his current contract. The channel would be allowed to continue to assemble IBM machines, although over time - the preferred method would be to allow the channel to order directly from Dell. Dell would continue to sell direct to customers. Although there is some questions and continued debate, current "agreed upon" name would remain IBM but Dell would be the PC brand. This would be similiar to the Lotus deal. There is some concern about dropping the IBM name off the PC.

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