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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (141640)	9/8/1999 5:15:00 PM
From: TechMkt	Respond to of 176387

Here is the whole story!!! Fez _______________________ Wednesday September 8, 4:16 pm Eastern Time Company Press Release Dell to Acquire ConvergeNet for Storage Technology Extends Total Storage Market Opportunity to $38 Billion ROUND ROCK, Texas--(BUSINESS WIRE)--Sept. 8, 1999--Continuing its drive to become one of the top three storage vendors in the world, Dell Computer Corporation (Nasdaq:DELL - news) today announced a definitive agreement to acquire privately held ConvergeNet Technologies Inc. of San Jose, Calif. ConvergeNet, a storage networking company focused on enterprise data-storage technologies for storage area networks (SAN), has assembled a leadership team with many years of experience from companies such as Hewlett-Packard Co., Storage Technology Corp. (StorageTek) and Sun Microsystems Inc. Under the terms of the acquisition, Dell will exchange about 6.9 million shares of Dell common stock for all outstanding shares and options of ConvergeNet. Based on yesterday's closing stock price, the transaction has a current aggregate value of approximately $340 million. Upon completion of the transaction, which is expected within 60 days, Dell will record a one-time charge against after-tax earnings of five to seven cents per share for purchased in-process research and development expenses. The boards of directors of each company have approved the acquisition. Completion of the transaction is subject to customary conditions. Morgan Stanley Dean Witter acted as a financial advisor to Dell in connection with this transaction; Salomon Smith Barney was an advisor to ConvergeNet. The acquisition will bring SAN technology to Dell that will enable its current and future PowerVault storage products and other storage systems to connect to any Intel- or RISC-based server running UNIX, Solaris, Windows NT, Windows 2000, NetWare or Linux operating systems. This new ability to connect heterogeneous storage systems to servers of all types, regardless of operating system, expands Dell's total market opportunity to the entire open-systems storage market, which International Data Corp. estimates will total $38 billion by 2002. Dell's acquisition of ConvergeNet will allow customers who own or buy current Dell PowerVault products to leverage and protect those investments well into the future, while offering those customers a clear transition path to technology of the future. ``The ConvergeNet technology combined with Dell's efficient, low-cost business model will mean our customers can get leading-edge data-center storage solutions at values unseen before in the industry,' said Michael Lambert, senior vice president of Dell's Enterprise Systems Group. Lambert continued, ``Our customers want storage technology from Dell that connects with any open-standards server. The technology we acquire with ConvergeNet will help make that happen. ConvergeNet's technology fits our strategy to deliver storage area network solutions that speed access to and backup of enterprise data; simplify the configuration, allocation and management of storage systems; and help ensure that data is available all the time.' ``ConvergeNet has created a leadership team, a fast entrepreneurial culture and a technology which complements Dell's commitment and direction for its storage business,' said Dick Watts, president and chief executive officer of ConvergeNet. ``We share a vision of the future of storage with Dell, and believe that the combination of our technology with Dell's dynamic, global business model will significantly change the storage market.' Upon completion of the transaction, Watts will become vice president and general manager of Dell's storage systems division, reporting to Lambert. This organization comprises the combined Dell and ConvergeNet storage teams.

To: Lee who wrote (141640)	9/8/1999 9:51:00 PM
From: Ian@SI	Read Replies (2) \| Respond to of 176387

OT to Lee re economic outlook... I come from Kudlow's school. The Fed has no business fighting US prosperity. Yet some of these governors seem to think that it's their job to jawbone the market out of recognizing that prosperity in stock prices. That prosperity is directly contributing to a better quality of life not just for the US work force but also for workers globally. 1. There has been no meaningful inflation in the US or Canada for several years. And while excess capacity in North America and globally remains at its current levels, it's unlikely that we're going to see any inflation any time soon. [DRAM glut to shortage is an anomaly that I didn't expect this soon, nor do I expect it will last long.] 2. Highest value added jobs are being retained in the US while some of the lower value added jobs are being exported to other parts of the world. Isn't this just the normal operation of our free market system. Why would the fed think there's a benefit to interfering with that process? Is there something inherently wrong with increasing the average wealth of US workers? ... or of those workers around the globe doing some of the more menial work on their behalf? I find it hard to believe that a Fed Governor wouldn't understand that these are among the benefits being realized by free trade policy. ... essentially, a global workforce has been created with maximum wealth being generated in those markets which are most free. I'm beginning to believe that Milton Friedman was absolutely right when he suggested that the entire Fed staff could best be replaced by a single computer. ... and then country would be much the better for it. Just a few random thoughts on a Wednesday evening. Best wishes, Ian.

To: Lee who wrote (141640)	9/9/1999 8:55:00 AM
From: TRCM	Read Replies (2) \| Respond to of 176387

Lee - Re <<<this represents a tight labor market>>> I don't think anyone would debate that the U.S labor market is "tight", but that isn't my argument..Due to the time lags which take place between a change in monetary policy and the impact it will have on the economy, one can conclude that the two recent rate hikes won't be fully reflected in the economy until the end of the year, at least. My argument regarding last Friday's employment report is that it was below consensus expectations which simply means that perhaps the labor market isn't quite as "tight" as many had anticipated...the employment rate has been fluctuating between 4.4 and 4.2% for months, nothing new there, but what will concern the Fed is wage push inflation...Lower productivity coupled with higher wages are the signals A.G warned us to watch for. There were many who argued that Friday's report was the make or break data for the markets...If the labor markets are too "tight", then why are 24 of 26 primary dealers surveyed not calling for another hike in October...