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Technology Stocks : Dell Technologies Inc.

DELL 133.78

-0.1%

Nov 14 9:30 AM EST

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To: jbn3 who wrote (116054)	4/10/1999 8:50:00 PM
From: Chuzzlewit	Read Replies (1) of 176387

Bachman, I think you are correct. I suspect that the way it might be done is to begin by outsourcing to Dell a portion of the desktop assembly business. Effectively, IBM might freeze existing capacity and cede new capacity to Dell. Alternatively, Dell might simply buy a portion of the business based on the value of the physical assets (since the business itself doesn't seem to generate profit). That would allow IBM to generate profit on the component manufacturing side and Dell to do what it does best -- assemble and ship. The tie would be agreements concerning sourcing components. Just some random thoughts. TTFN, CTC

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