Dell announced Thursday it has entered into merger talks with Compellent Technologies, offering $27.50 per share for a total of nearly $900 million. The offer is below Compellent’s stock price on Wednesday of $33.65 a share. While acquisition bids are typically slightly above stock price, Dell may see Compellent’s share price as distorted. Before Dell and HP entered into a bidding war for storage company 3Par last August, Compellent’s stock was cruising at $12 per share. Apparently the market ran up some acquisition expectation on Compellent shares.
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Dell Cozies Up to Compellent
Posted by: Rob Spiegel December 9, 2010 12:24 PMDell announced Thursday it has entered into merger talks with Compellent Technologies, offering $27.50 per share for a total of nearly $900 million. The offer is below Compellent’s stock price on Wednesday of $33.65 a share. While acquisition bids are typically slightly above stock price, Dell may see Compellent’s share price as distorted. Before Dell and HP entered into a bidding war for storage company 3Par last August, Compellent’s stock was cruising at $12 per share. Apparently the market ran up some acquisition expectation on Compellent shares.