Dell raises funds for future acquisitions
Dell Computers on Tuesday said it will float bonds as it raises money potentially for new acquisitions. Hewlett-Packard's (HP) stronger balance sheet enabled it to trump Dell and win storage vendor 3Par.
Stung by that experience, Dell is looking to bolster its cash reserves in the event of another bidding war. HP won 3Par with a US$2.4 billion bid. Dell originally offered US$1.15 billion and then the bidding war with HP commenced.
In a filing with the Securities and Exchange Commission, Dell said it will offer bonds in three parts. Dell's prospectus didn't detail an exact amount to be raised, but analysts say the amount is about US$1.5 billion. One analyst cited a Bloomberg report on the US$1.5 billion figure. Other tech giants such as Cisco, IBM, Microsoft and Oracle have floated bonds in part to fund acquisitions.
Read more of "Stung by the 3Par bidding war, Dell moves to raise cash" at ZDNet.