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

To: stock bull who wrote (107145)	3/4/1999 2:28:00 PM
From: Dorine Essey	Respond to of 176387

IBM bonds widen a tad, Dell unchanged -------------------------------------------------------------------------------- NEW YORK, March 4 (Reuters) - Spreads on bonds of International Business Machines Corp. widened a tad in response to Thursday's news of its technology pact with Dell Computer Corp. DELL.O, U.S. corporate bond traders said. "IBM spreads are about one to two (basis points) wider," said one high-grade trader. IBM, the world's biggest computer maker, and Dell, the world's fastest growing one, on Thursday agreed to a $16 billion pact under which IBM will supply a range of key computer components to Dell. Under the deal, Baa1/BBB-plus rated Dell will buy a range of personal computer components including high capacity data storage, computer chips, network gear and personal computer monitors. The agreement also calls for the future use of IBM advanced semiconductor technology by Round Rock, Texas-based Dell. Dell Computer's 7.10 percent debentures and 6.55 percent senior notes were unmoved by the news, traders said. "Those issues are very illiquid ... they rarely trade," said one market player of Dell's issues. Meanwhile, equity investors applauded the news, pushing IBM's stock up $9.75 to $176.50 a share and Dell's stock up $2.75 to $83.69 a share. The seven-year deal, which the companies believe to be the largest in information technology history, will first involve Dell using IBM products such as computer disk drives and flat panel displays in Dell's personal computers. The agreement also calls for the companies to work together on technology development projects and to share products. Armonk, N.Y.-based IBM has identified services, software and the sale of its technologies as key growth areas. Dell has said it wanted to develop a stronger set of computer services to compete more effectively with other computer makers such as Compaq Computer Corp. CPQ.N and Hewlett-Packard Co. HWP.N. International Business Machines Corp. senior debt is rated A1 by Moody's Investors Service and A-plus by Standard & Poor's. REUTERS Rtr 14:05 03-04-99 Copyright 1999, Reuters News Service --------------------------------------------------------------------------------