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

To: Alohal who wrote (123405)	5/9/1999 4:30:00 PM
From: Lee	Read Replies (1) \| Respond to of 176387

Hi Aloha1,..Re:. IMO a Dell buyout of GTW would serve to give Dell instant and full access to the consumer market and relegate CPQ to an also ran for years to come. From the CNBC CEO interview with Michael Dell on Friday, he stated that their consumer business was doing very well. Because they already have instant access to consumers via phone or net, and because they have historically grown internally rather than by acquisition, and finally because they focus more on the higher margin businesses, I don't think a buyout of GTW is in the plan. Especially since they're already expanding in Tennessee and most especially since they are very focused on their customers, not what would hinder competition. I tend to agree with Mohan, i.e. why would they spend the money to acquire GTW when they already have access to that market for what they wish to offer, and at much lower and better controlled costs. Besides, isn't the retail consumer end of the business the lowest margin?<g> MSD has already mentioned several times recently the importance of broadband so this may be a significant path of evolution or expansion which I would think would provide better margins. But what the heck do I know! <g> Lee

To: Alohal who wrote (123405)	5/9/1999 8:13:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

RE: CPQ and GTW - I think Stearns was pretty much alone in thinking that was a good idea. According to others who were involved in the deal there were at least 4 major deal-breakers which were never resolved. Stearns is not a good source for what was really happening at CPQ IMO - although I never met him, other very senior CPQ managers have said he was pretty much disconnected from anything that was really happening, one of the reasons he was not kept on after the DEC merger. He does seem to have some friends in the trade press and apparently wants his 15 minutes of fame now.