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


To: Stonehenge who wrote (110502)3/21/1999 9:02:00 PM
From: SirVinny  Respond to of 176387
 
Hi Stonehenge,

First of all, I want to emphasize that I do not believe that IBM will purchase DELL. IBM wants out of the PC business. Our discussion is simply on the remote possibility that IBM would acquire DELL.

Ina any type of acquisition or merger, selling the agreement is 90% of the problem. Just look at the recent fiasco of USA - LYCOS deal where Lycos lost 30%-40% of its value in two days. This loss was due to the fact that Lycos investors felt they were being shortchanged in the deal.

Similarly, IBM shareholders might feel they would be shortchanged if the price for DELL is too high. On the other hand, if IBM shareholders feel they are picking DELL up at bargain price then shareholders of both companies will be enriched...and fast too.

Therefore, with regards to my comment concerning maintaining DELL's price at low levels artificially, I was suggesting that it might be a possibility in the short term until an announcement of a deal is made.

SirVinny