Dell may buy EMC for $ 50 billion

Dell has come close to making a deal to buy an EMC storage system manufacturer. The possible amount of the transaction, according to sources close to the leadership of both companies, may be about $ 50 billion. At the same time, the parties to the transaction can sign an agreement this week, the Financial Times writes . It is worth noting that Dell does not have its own funds for the acquisition of EMC, so the management had to attract about $ 40 billion of loans.

As part of the transaction, EMC shareholders must obtain securities that will be tied to the overall valuation of VMware, a company that is controlled by EMC. As for the value of the shares of the company being purchased, the EMC shareholders will receive $ 27.25 per one security. As for the new shares, the value of which is tied to VMware, it is not entirely clear how their valuation will be carried out.

Last Friday, Michael Dell, head of Dell, discussed a potential deal with his advisors. As for financing, such banks as JPMorgan, Bank of America, Credit Suisse and Barclays participated in the Dell lending negotiations for the purchase of EMC.