Dell has been seen wining and dining bankers to get enough cash to push the deal through. EMC has a market capitalization of about $50 billion so he needs a fair bit to pull the deal off.
The move could further strengthen Dell’s presence among corporate clients at a time when Michael
Dell has been trying to transform the company he founded in 1984 into a complete provider of enterprise computing services like HP and IBM.
It is amazing really because it is only two years since Dell was taken private for $24.9 billion by founder Michael Dell and private equity firm Silver Lake.
EMC has been struggling under pressure from activist investor and shareholder Elliott Management which wants the company to spin off its majority-owned VMware unit.
The House of Elliott plans to give EMC most of October to respond to its demands.
It would appear that the Dell deal has been a while in making. In September 2014, the Wall Street Journal reported that EMC was exploring options and had held talks with Dell and HP.