AB InBev – SABMiller
Dell – EMC (Per CreditSights: “We believe that Dell has signed up to do the unthinkable – raise about $40 billion of debt”)
x – Sandisk (supposedly)
Maxim – Analog Devices (supposedly)
All of that action has lead UBS’s Matthew Mish and Stephen Caprio to ask if debt markets are reaching full capacity in this late stage of the credit cycle (with our emphasis): Read more
As was widely expected, the computer maker has struck a deal to go private – for a whopping $24.4bn. The price per share is at the higher end of the $13.50 to $13.75 reported.
The statement from the company is here:
- Dell stockholders to receive $13.65 per share in cash
- Transaction valued at approximately $24.4 billion
- Transaction implies a 37 percent premium over the average closing share price during the previous 90 calendar days ending Jan. 11, 2013
Dell has cut its revenue forecast for the rest of the year, sending its shares tumbling nearly 8 per cent in after-market trading, says the FT. The company blamed economic uncertainty including a slowing outlook for government and corporate spending as it cut the forecast for revenue growth to between 1 and 5 per cent, instead of 5 and 9 per cent, the WSJ says. Nevertheless, Dell executives claimed the company is now less dependent on its traditional PC business and said it was in a stronger position to withstand an economic downturn than it had been in 2008.
Dell has slashed its revenue forecast for the rest of this year in the latest sign that a in consumer confidence and delays in government spending are eating into the prospects for leading computer hardware companies, the FT reports. Nevertheless, Dell executives claimed further progress in making the company less dependent on its traditional PC business and said it was in a stronger position to withstand an economic downturn than it had been in 2008. With a fiscal quarter ending in July, a month later than most technology companies, Dell’s earnings provide a more recent insight into the state of the broader industry. The company said it had seen a slowdown start to take hold in the middle of June and continue through the quarter.
Hewlett-Packard shares dropped to their lowest level in almost two years after the top computer maker by sales cut its profit forecast on weak consumer demand and planned changes in its services unit, the FT reports. As it released second-quarter earnings early on Tuesday, HP said it had been surprised by the depth of a 23 per cent fall-off in consumer PC revenue, which will make it more dependent on its forthcoming entrance to the tablet market, albeit late, with the TouchPad. Results from Dell, meanwhile, saw the rival computer maker’s stock rise as much as 5.8 per cent in extended trading after its profit topped analysts’ estimates. Bloomberg reports this marks the second straight quarter that Dell’s results have outshined those of rival Hewlett-Packard.
A well-received earnings report from computer group Dell appeared to spark a risk rally after several dour sessions, though low Treasury yields suggested underlying caution about US growth remains, the FT’s global market overview reports. The FTSE All-World equity index was up 0.5 per cent, bouncing off a four-week low, while commodities were mostly firmer and the dollar weaker – a classic “risk-on” sweep for traders. S&P 500 futures were pointing to a 0.3 per cent gain for Wall Street at the open, with the FTSE Eurofirst 300 was up 0.6 per cent following a 1.1 per cent advance for the Asia region.
Shares in Dell rose 6 per cent in after-hours trading and PC makers have risen across Asian markets after the company’s quarterly earnings went beyond expectations, Reuters reports. Dell posted a gross margin of 21.5 per cent, some way above forecast, and predicted a 5 to 9 per cent rise in current fiscal-year revenue. Analysts are however doubtful that the high margins can be maintained as competition rises. Dell’s consumer business also remains slow despite a ‘corporate refresh’ driving sales elsewhere, the NYT says. Sales from consumers, which total 20 per cent of overall sales, fell 8 per cent.
Shares in Dell jumped nearly 6% in after-hours trading on Tuesday after its quarterly earnings raised investor hopes that the third-biggest PC maker’s turnround is reaping rewards, reports the FT. The US company reported fourth-quarter profits that far exceeded Wall Street expectations, as profit margins jumped on stronger sales of its most profitable products. Dell executives cited the company’s inroads with large corporate and small business clients, along with its move into higher-priced products such as servers, data storage and IT consulting, which accounted for 29% of Dell’s revenue. Dell’s 4Q net income was $927m, or 48 cents a share, on $15.7bn in revenue, up from 17 cents per share on $14.9bn in revenue a year before. On a pro-forma basis earnings came in at 53 cents a share, against analysts’ forecasts of 37 cents. Some analysts warned the improved margins were due mainly to lower component prices, and would be unsustainable in the coming fiscal year. But Dell said other factors played an equally important part. Ultimately, says the WSJ, the results show progress in Dell’s long turnround effort.
Dell’s nifty deal to buy US data storage group, Compellent Technologies, must have restored its faith in the world of M&A, after its dismal ordeal earlier this year in one of the most excruciating bid battles in recent times, the contest with Hewlett-Packard for data storage group 3Par.
As Bloomberg reports, Dell agreed on Monday to buy Compellent for $960m — in a mercifully fairly straightforward deal. Read more
Dell has agreed to buy US data storage group Compellent Technologies for $960m, highlighting growing competition in the data storage market, reports Bloomberg. Compellent investors will receive $27.75 a share in cash, although the companies said last week they were in exclusive talks for an acquisition at $27.50 a share. The purchase price is 3.3% less than the Dec 10 closing price for Compellent, which gained nearly 70% in the past two months on speculation about a deal. Such speculation, the FT noted, has become more common in storage stocks since Dell lost out to Hewlett-Packard in a battle for 3Par in August. Now, says DealBook, investors are waiting for the next deal to drop. While several private companies are still up for grabs, only a few public companies are left, namely CommVault and NetApp.
Dell’s third-quarter profit more than doubled from a year ago on a 19 per cent increase in sales, easing concerns among technology investors about a slowdown in the sector, the FT reports. Shares in the second largest computer maker in the world by units shipped rose 5 per cent in after-hours trading on Thursday after the company said that all its divisions enjoyed revenue gains. In total, Dell said that net income reached $822m, or 42 cents a share, up from $337m and 17 cents, on revenue of $15.4bn. That encouraged investors alarmed by mixed results from Cisco Systems last week, although Dell cautioned that consumer demand remained “more muted” and it kept its full-year revenue guidance unchanged. Hewlett-Packard is set to report on Monday.
Ho hum. Another day, another Hewlett-Packard bid…
The acquisitive US tech giant is nearing a deal to buy US security software maker ArcSight, fresh from its $2.35bn victory in a bidding war against Dell for data storage company 3Par, reports the FT. Read more
Hewlett-Packard is nearing a deal to buy US security software maker ArcSight, fresh from its victory in a bidding war with Dell for data storage company 3Par, reports the FT. HP is expected to pay about $1.5bn for ArcSight and a deal could be announced within days. ArcSight’s shares have jumped on takeover speculation and closed on Friday at $35.10, for a market cap of $1.21bn. DealBook notes that despite the contentious departure of its former CEO Mark Hurd, HP again has “shown little timidity about paying up”, while the WSJ - which first reported the ArcSight deal - notes that HP last month announced acquisitions of software makers Fortify Software and Stratavia for undisclosed terms.
Hewlett-Packard won the battle for US data storage company 3Par on Thursday after rival PC maker Dell balked at raising its offer yet again, the FT reports. 3Par accepted HP’s latest bid of $33 a share, or about $2.4bn, beating Dell’s revised bid of $32 a share, and paid Dell a $72m fee to break their merger agreement. The contest, starting before 3Par accepted a Dell offer at $18 last month, highlights intensifying rivalry between the two top US PC makers as they move into new areas. FTAlphaville asks, what’s so special about 3Par?, while BreakingViews wonders whether Dell’s shareholders are on tranquilisers.
Dell said on Sunday it was assessing its bid for 3Par after the US data storage company’s board late on Friday said Hewlett-Packard’s $2bn offer was a “superior proposal”, reports Reuters. After HP upped its offer for the third time in a week, 3Par notified Dell of its intention to terminate their earlier merger agreement. Dell has three business days to match HP’s offer under its original agreement with 3Par. A Dell spokesman said the company would decide “in the best interest” of customers and shareholders. But, notes FT Alphaville, one wonders what’s so special about 3Par anyway?
So, a rather baffling bid battle rages on – with yet another counter-offer from HP (see update below) after we reported on Friday that Dell looked to have won out in the most frenzied bidding war we’ve seen in recent times. That came after the US computer giant matched Hewlett-Packard’s (yet again) revised $1.8bn offer for US data storage company 3Par, Reuters reports, on Friday.
And like any good tech company, 3Par within hours of accepting Dell’s offer, had the news on its corporate website. Read more
Was it really only two months ago that we were seeing headlines like this:“M&A activity slack in spite of renewed appetite“, and reading columns like this, by the FT’s M&A reporter Lina Saigol, (our emphasis):
Dealmakers are born optimists, but even by their own standards there has been little to be cheerful about so far in 2010…. Read more
Hewlett-Packard on Thursday took another swipe at Dell’s deal to take over 3Par, raising its bid for the data storage company to $27 a share just hours after Dell had narrowly outbid its rival with a $24.30 per share offer, the FT reports. This fight to buy a small data-storage company has turned into a classic corporate battle, says the WSJ. No, it’s madness, says Lex. Will there be a counter counter counter counter bid? Justifying Dell’s last offer already assumed insane amounts of growth, and actual profit generation. 3Par hasn’t turned a profit since going public in 2007, Bloomberg points out.
Hewlett-Packard on Thursday further escalated the bidding war over US data storage company 3Par, raising its bid to $27 a share just hours after Dell narrowly outbid its rival, reports the FT. Earlier Dell had barely trumped HP with a $24.30 a share cash offer, just above the $24 a share that HP said it would pay in order to beat Dell’s $18-a- share deal agreed last week with 3Par. DealJournal meanwhile says the key question is: which company needs 3Par more?
Dell is planning an offer for data storage firm 3Par that will be ‘competitive’ compared to the $1.6bn counter-bid launched by Hewlett-Packard, people familiar with the matter have told the FT — but the new price will likely not be dramatically higher, even as Dell moves to announce an improved bid this week. Analysts polled by Reuters expect Dell to come back to 3Par with an offer of $29 per share, but others predict the firm will walk away, if HP’s bid has been seen as too high already.
Dell is set to make an improved bid within days for US data storage company 3Par that is “competitive” with Hewlett-Packard’s rival $1.6bn offer, reports the FT. Dell’s new offer is unlikely to be significantly higher than HP’s bid, which topped Dell’s initial $1.15bn approach a week earlier. In a regulatory filing on Tuesday, 3Par said that HP’s $24-a-share bid was “reasonably likely” to be deemed superior by its board to Dell’s original bid. 3Par was set to provide HP with confidential information on Wednesday as part of deal talks. DealBook meanwhile quotes analysts questioning HP’s move.
3Par, the US data storage company being targeted by rival takeover offers from Hewlett-Packard and Dell, boosted the bidding war on Tuesday as Dell scrambled to stay in the running, reports the FT. In a late Tuesday filing, 3Par said that as things stood, HP’s $1.6bn offer was “reasonably likely” to draw the support of its board. The formal declaration triggers a timetable that gives Dell a matter of days to raise the stakes still higher, or cede the battle to its larger rival. Dell is working on an improved offer, said people close to the matter.
Hewlett-Packard has already swooped in on Dell’s $1.3bn bid for data firm 3Par with a $1.6bn counter-bid, but the battle is far from over, reckons the NYT’s Dealbook. Dell needs 3Par to move into enterprise technology — and Oracle, the only firm that could outbid either firm, is so far absent. At any rate, deal-making in the tech sector is up 60 per cent in a year, says the FT, thanks to a slew of big transactions, and HP has been tracking the prospects of a 3Par bid for a while. A shame, then, that its valuation of the firm is ‘frankly bonkers,’ Lex argues, with 3Par not having made operating profit for half a decade.
Dell is set to sweeten its offer for US data-storage provider 3Par within days, after Hewlett Packard on Monday trumped its proposed $1.15bn bid – made last week – with a $1.6bn offer, reports Bloomberg, citing a person familiar with the matter. The FT earlier reported that under the terms of the original deal, Dell will have certain rights to match HP’s proposal, should it be deemed superior by 3Par’s board. Lex meanwhile questions the price that both bidders seem prepared to pay.
Hewlett-Packard squared up to long-time computer rival Dell with a $1.6bn counterbid for data storage company 3Par on Monday, adding to a surge in technology mergers by industry leaders pushing to expand their business range, the FT reports. Global dealmaking in the sector has risen by 60 per cent this year, according to Dealogic data, even as market volatility and ailing confidence in the economy has helped stifle an M&A recovery in some sectors. That resurgence has been led by the US, where deal volumes have almost doubled relative to 2009 because of big transactions, including Intel’s move last week to buy McAfee for $8bn.
Dell, the third largest PC maker, said on Monday it would acquire 3Par, a US data storage company, in a $1.15bn deal that will increase its competition with rivals including IBM and EMC, reports the FT. The deal comes as Dell, which is tackling its over-dependence on low-margin PC sales, makes a long-awaited foray into the IT services business. Bloomberg adds that Dell plans to operate 3Par as an independent business unit.
Dell is paying the Securities and Exchange Commission $100m to end an investigation into its accounting practices and also its relationship with semi-conductor maker Intel, Reuters reports.
Foxconn, the world’s largest electronics contract manufacturer and a key supplier to Apple, HP and Dell, is revamping the pay structure at its main production base in southern China in a move that could upend the cost structure of global electronics production, according to the FT. Following a 30 per cent wage increase from July 1, the group said workers who reached certain performance standards would now also get an additional 66 per cent pay rise from October 1.
Foxconn, the electronics contract manufacturer to such firms as Apple, Sony, and Dell, is planning to raise wages for its Chinese workers by about 20 per cent after a spate of suicides at its main plant in southern China put working conditions at its factories under international scrutiny, the FT reports. Apple had previously announced that it would investigate Foxconn’s response to the suicides.