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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: PMS Witch who wrote (30240)	9/28/1999 3:12:00 PM
From: taxman	Respond to of 74651

Dell/IBM - Wedding Dells Exclusive - New York - Dell Computer Corp., the world?s No. 2 personal computer maker, and International Business Machines Corp., the No. 3 PC maker and largest computer services provider, have agreed to a new $6 billion deal in which IBM will become a key supplier of computer services to Dell corporate customers. The deal continues an expansion of an earlier $16 billion pact under which IBM sells key technology components such as data storage disks and computer chips to Dell. These pacts make IBM the most important strategic partner of Dell. Dell will benefit from IBM by gaining access to high-end technology that will allow it to sell more expensive enterprise systems and will allow Dell to provide the service for these systems. The-Adviser.com, which first reported the earlier $16 billion deal, understands that the new service agreement was the result, in part, of renewed merger and acquisition talks involving IBM's PC division by Dell or an outright takeover of Dell by IBM. Discussions were once again held and would have provided that Dell take over the manufacturing of Old CO IBM branded machines and reduce overall component costs. The talks also included an outright acquisition of Dell by IBM - something that Michael Dell was not against since he would have been groomed to be the successor to Lou Gerstner - a fitting legacy to his career. In summary, Michael Dell is moving into high end equipment to offset lower selling prices. IBM can't make money from just its PC division. Either way, both firms benefit from the service deal. As happened earlier in the year, the talks for now, as we understand, broke off due strictly to price. IBM felt that Dell's current price was too high and was not willing to pay a premium or short change their own shareholders. Additional details coming as we confirm. ¸ Copyright. The Independent Adviser Corporation. regards