The historic acquisition of EMC Corp for $59 billion is on its way ahead, with the voting set this spring. Dell's Michael Dell said the deal would be completed according to the stipulated schedule. Dell may file an updated SEC proxy statement ahead of EMC shareholders vote in May.
According to the latest memo from Michael Dell, the management structure after the acquisition will be changed. David Goulden, Executive of EMC will be the in-charge of Enterprise Systems Group. Dell's Jeff Clarke, however, will remain in charge of the PC business. Another Dell executive, Marius Haas, will be the President and Chief Commercial Officer (CCO).
The Wall Street Journal (WSJ) reports that the deal needs to be approved in 16 jurisdictions. China and other countries still have to approve the deal. Dell has recently received antitrust clearance from the US and European Union (EU), and it is expecting another one from other nations soon. EMC shareholders' voting is likely to take place in May.
Dell said "The transaction is on schedule under the original timetable and the original terms. We recently received antitrust clearance from the United States and European Union and are starting to see other countries provide approvals as well."
BBC adds the European regulators approved Dell's acquisition. EU's approval is the last major regulatory hurdle for Dell to overcome all the hassles on the way to acquire EMC. After the acquisition, Dell will be in a position to compete with IBM, Cisco Systems and Hewlett-Packard in cloud computing and cyber security segments.
Jason Pompeii, a senior director with Fitch Ratings, said "We continue to expect the deal to proceed. Clearing the regulatory hurdles they cleared this week is the most recent step. And the fact that credit markets seem to have calmed slightly is probably helpful."
Financial Times reports that EMC shareholders are expected to get $24.05 in cash plus shares tied to the value of VMware, an EMC-run company engaged in data centre software development. This comes to a total of $33.15 per share giving a valuation of $67 billion to the company.
VMware share price dropped 8.1 percent to $72.27 on New York Stock Exchange (NYSE), while EMC's stock rose 1.8 percent to $28.35.
As of late, credit markets are improving and this is givinga leeway for Dell's bankers to line up investors funding for tens of billions of dollars. Dell's bankers are in the process of mobilizing debt for funding the huge $59-billion acquisition.
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