IMO, Elliot Management & Joe Tucci will be laughing their a-- off.
https://www.ft.com/content/f5e39ffe-1b6d-11e9-9e64-d150b3105d21
8 replies (most recent on top)
It did payoff. They keep draining VMware and Pivotal's bank accounts.
EMC is an investment choice that did not convert because Dell is filled with kiss asses pretending to be technical, who cannot for the lives of them transfer any technologies and best practices other than copy and paste powerpoints. It's a sitting natural resources not being processed but expected to process itself.
January 20, 2019 4:48 pm by Mark Vandevelde and Sujeet Indap in New York
Investors have delivered Michael Dell a humiliating verdict on his company’s return to the stock market, where the computer maker’s core business is now reckoned to be worth less than nothing.
Dell shares have closed below $49 every day since they began trading in late December, despite the technology company — which was taken private in 2013 by Mr Dell and private equity firm Silver Lake — previously telling investors that a fair price would be far higher.
The disappointing valuation follows activist investor Carl Icahn’s warning that Dell was using “magical accounting” when it mooted a potential share price of $79.77, in what he said was an effort to “hoodwink” investors into giving up their holdings of a security that traded under the symbol DVMT.
Holders of that security, which was supposed to track the value of shares in a fast-growing software company called VMware, eventually consented in December to swap them for new Dell shares after the computer company sweetened the terms.
A month later, Dell’s equity is worth $33bn, significantly less than the company’s financial assets, which include $52bn of holdings of shares in three publicly traded affiliate companies, including VMware.
That implies that investors place a negative value on Dell’s core business selling computers and IT services.
https://amp.ft.com/content/f5e39ffe-1b6d-11e9-9e64-d150b3105d21
Try this
Mr Tucci laughed all the way to the bank after MD agreed to buy the EMC bill of goods and is still having a good chuckle watching Dell flail about trying to get out of the mess it created.
Here is how to access the link. Log on to your google account. Search for 'Market delivers humiliating verdict on Dell'. Click on the first ft link, you should be able to see it.
Bill Anderson
Paywalled. What’s the bottom line?