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


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

Chris Mellor

Thousands of layoffs announced as spinning rust enters its death spiral


Locker room jocks photo via Shutterstock
Best locker-room strategy: Avoid emulating AWS directly
STRASBOURG, JUNE 29, 2016: The seat of the European Parliament. by Marco Aprile for shutterstock. EDITORIAL USE ONLY
Plan b, image via Shutterstock
EU workers, new markets: post-Brexit pressure on May & Co
Tough question, pic via Shutterstock