The Channel logo


By | Kat Hall 13th October 2015 14:52

EMC+Dell: Firm made a $2bn bed-hopping proposal

If we find a superior proposal before 'consummating' with you, we're off

EMC-Dell deal Not content with its $67bn (£44bn) offer from Dell, EMC has said it will pay the firm a $2bn (£1.5bn) "break fee" if it receives a "superior offer" before the deal is officially "consummated."

On Tuesday the company said, in a statement uploaded to the Securities and Exchange Commission's website, that its agreement to be flogged off contains "specified termination rights for both parent and the company if the merger is not consummated".

It said if the merger agreement is terminated for "a superior proposal" prior to December 12, 2015, the termination fee payable will be $2bn."

EMC will pay an additional $2.5bn (£1.6bn) if it enters into a deal with another company within 12 months of terminating the deal with Dell.

The agreement also said Dell will have to pay EMC a fee of $4bn (£2.6bn) under specified circumstances, and in certain instances, an alternative termination fee of $6bn (£4bn). ®

comment icon Read 4 comments on this article or post a comment alert Send corrections


Frank Jennings

What do you do? Use manual typwriters or live in a Scottish croft? Our man advises
A rusty petrol pump at an abandoned gas station. Pic by Silvia B. Jakiello via shutterstock

Trevor Pott

Among other things, Active Directory needs an overhaul
Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella


League of gentlemen poster - Tubbs and Edward at the local shop. Copyright BBC
One reselling man tells his tale of woe