{"id":19291,"date":"2015-12-15T15:42:06","date_gmt":"2015-12-15T15:42:06","guid":{"rendered":"http:\/\/www.businesscloudnews.com\/?p=241472"},"modified":"2015-12-15T15:42:06","modified_gmt":"2015-12-15T15:42:06","slug":"dell-emc-takeover-raises-questions-about-virtustream-and-perot-systems","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/dell-emc-takeover-raises-questions-about-virtustream-and-perot-systems\/","title":{"rendered":"Dell EMC takeover raises questions about Virtustream and Perot Systems"},"content":{"rendered":"<p><a href=\"http:\/\/www.businesscloudnews.com\/files\/2015\/10\/Dell-office-logo.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-236891\" src=\"http:\/\/www.businesscloudnews.com\/files\/2015\/10\/Dell-office-logo-300x278.jpg\" alt=\"Dell office logo\" width=\"300\" height=\"278\" \/><\/a>Two new developments have been reported this week as Dell and EMC attempt to resolve the $67 billion question of how to finance one of the biggest mergers in the history of technology.<\/p>\n<p>Cloud software giant VMware has withdrawn from a previous commitment to the Virtustream cloud service venture with parent company EMC, it has disclosed to regulators.<\/p>\n<p>The new direction comes as Dell, the proposed new owner of EMC and a potentially controlling stakeholder in VMware, is allegedly looking at new options to finance the $67 billion deal. According to sources quoted in <a href=\"http:\/\/recode.net\/2015\/12\/14\/dell-looks-to-sell-perot-systems-for-more-than-5-billion-to-raise-cash-for-emc-acquisition\/\">Re\/code<\/a> Dell is looking for a buyer for its $5 billion valued technology outsourcing business Perot Systems. The funds raised would help reduce the level of debt Dell must take on if the EMC takeover is to proceed.<\/p>\n<p>In November, BCN <a href=\"http:\/\/www.businesscloudnews.com\/2015\/11\/11\/funding-of-dell-emc-acquisition-could-scupper-deal-report\/\">reported<\/a> how questions of financing of Dell\u2019s takeover of EMC could scupper the deal, which BCN first <a href=\"http:\/\/www.businesscloudnews.com\/2015\/10\/12\/dells-finds-67-billion-to-acquire-emc-and-create-cloud-giant\/\">revealed<\/a> in October. A week after the deal was announced, EMC and VMware unveiled plans for a joint, equal partnership to create cloud service Virtustream, but unease about the announcement wiped 25% off VMware share values, according to some analysts. Since Dell and its backers were planning to use share value as a means of funding the transaction the decline in stock market value threatened to undermine the funding of the deal.<\/p>\n<p>Shareholders in both EMC and VMware are allegedly unhappy with the idea of the Virtustream project, which appeared to be a \u201cdumping ground\u201d for money-losing assets, it\u2019s claimed.<\/p>\n<p>VMware shares fell 25 cents to $58.80 by mid-morning Monday.<\/p>\n<p>Meanwhile, as Dell seeks to raise $10 billion in cash to lighten the potential burden of debt, it is allegedly courting suitors for Perot Systems, an outsourcing outfit it bought in 2009 for $3.9 billion.<\/p>\n<p>According to reports, Dell has been in talks with India-based Tata Consultancy Services, French outsourcing giant Atos, New York based IT services company Genpact and Canadian IT firm CGI. Talks with Tata stalled on a disagreement about the valuation or Perot Systems, say reports.<\/p>\n<p>According to Re\/Code sources Dell began trying to sell Perot Systems three months ago and the cash realised would be a crucial enabler for the EMC acquisition. However, a range of potential buyers who were sounded out, including IBM, Infosys and Hewlett Packard Enterprise, have passed on the opportunity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Two new developments have been reported this week as Dell and EMC attempt to resolve the $67 billion question of how to finance one of the biggest mergers in the history of technology.<\/p>\n","protected":false},"author":105,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2845,64,1530,2185,1976,207],"tags":[],"class_list":["post-19291","post","type-post","status-publish","format-standard","hentry","category-acquisition","category-dell","category-emc","category-ma","category-news-analysis","category-vmware"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/19291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/105"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=19291"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/19291\/revisions"}],"predecessor-version":[{"id":19292,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/19291\/revisions\/19292"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=19291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=19291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=19291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}