Hewlett-Packard and 3 Dow Giants Making Waves Now
Cisco Systems (NASDAQ:CSCO): Current price $21.10
ePlus (NASDAQ:PLUS) said that its subsidiary, ePlus Technology, has won Authorized Service Provider Video Partner status from Cisco, which recognizes ePlus as having completed the training requirements and program prerequisites through which to sell, deploy, and support Cisco Service Provider Video Solutions. The Cisco Service Provider Video Program allows channel partners to identify, manage, and deliver end-to-end Cisco business and consumer video solutions for the use of service providers. Employing the network as a platform, Cisco Service Provider Video Solutions permit service providers to maintain sustainable growth and competitive advantage through enhanced service offerings supplied by Cisco authorized channel partners.
General Electric Co. (NYSE:GE): Current price $22.55
General Electric will provide seven wind turbines valued at roughly $30 million for a wind park to Energia Verde Ventuno Srl, a Romanian private firm, according to Bloomberg.
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Hewlett-Packard Company (NYSE:HPQ): Current price $16.48
Analyst Peter Misek at Jefferies wrote in a note to investors earlier on Tuesday that HP will probably not conduct a leveraged buyout similar to the transaction that Dell (NASDAQ:DELL) is currently undertaking, remarking that it is unlikely that anyone would take as large a stake in HP as Michael Dell took in his firm. Earlier Tuesday morning Dell announced that it had agreed to sell itself to Michael Dell and the investment firm Silver Lake at $13.65 per share. Michael Dell “will maintain a significant equity investment in Dell,” and will also make cash investment in it, according to the firm. Misek calculated that based on the valuation that Dell’s shareholders received, HP would be worth between $12.50 and $13.50 in an LBO. Meanwhile, the analyst predicts that HP will post significantly lower-than-anticipated earnings per share in fiscal year 2013, and he thus maintained a $10 price target and an Underperform.
Microsoft Corporation (NASDAQ:MSFT): Current price $27.59
Dell’s merger agreement under which Michael Dell, Dell’s founder and CEO, in partnership with investment firm Silver Lake, will purchase the firm represents a transaction valued at approximately $24.4 billion. Additionally, the buyers will acquire for cash all of the outstanding shares of Dell not held by Michael Dell and certain other members of management.
The merger agreement allows for a so-called “go-shop” period of 45 days, during which the Special Committee, with the aid of Evercore Partners will actively solicit, receive, evaluate and potentially enter into negotiations with parties who offer alternative proposals. A successful rival bidder who makes a qualifying proposal during the initial go-shop period would bear a $180 million termination fee, and for a competing bidder who did not qualify, the termination fee would be $450 million.
Upon completion of the transaction, Michael Dell, who owns about 14 percent of Dell’s common shares, will continue to serve as chief executive and will maintain a significant equity investment in the company by contributing his shares of Dell to the new entity, as well as making a substantial additional cash investment. The transaction will be financed via a combination of cash and equity contributed by Michael Dell, cash funded by investment funds affiliated with Silver Lake, cash invested by MSD Capital, a $2 billion loan from Microsoft, rollover of existing debt, along with debt financing that has been committed by BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets, and cash on hand. The transaction should close before the end of the second quarter of Dell’s fiscal year 2014.