EMC Corporation (EMC) -NYSE
27.86 Up 0.68(2.50%) 10 Oct 1:30am|After Hours : 28.85 Up 0.99 (3.55%) 10 Oct 5:27am
Dell Inc. will announce on Monday that it’s acquiring data storage provider EMC Corp., according to a person familiar with the matter, creating a corporate-computing giant in the largest-ever technology merger.
Dell plans to pay slightly more than $25 a share in cash, plus tracking stock in cloud software maker VMware Inc. valued at about $8 for each EMC share, said the person, who asked not to be identified because the information isn’t public.
The deal hasn’t been signed yet because the parties as of late Sunday were still negotiating a so-called collar around the VMware stock, the person said. In a stock merger agreement, collars offer buyers and sellers protection against steep fluctuations in the price of a security in the time between signing the deal and closing.