Technology Sector’s Largest-Ever Deal: Dell Takes Over EMC


Oct. 14 2015, Updated 11:08 a.m. ET

Dell takes over EMC

The technology sector witnessed its largest deal ever on Monday, October 12, 2015. The computer manufacturing company Dell, along with equity firm Silver Lake, acquired data storage player EMC (EMC) for $33.15 per share, the valuation totaling more than $67 billion. EMC rose by 1.8% on Monday when it agreed to be acquired by Michael Dell and partners.

[marketrealist-chart id=719959]

The graph above shows the performance of EMC since September 29, 2015. The stock had been performing extremely well, with a trailing-one-month return of 15.2%. The stock’s trailing-five-day return was 12% as of Monday, October 12, 2015. The stock traded at $28.35, beating its 100-day, 50-day, and 20-day averages of $26, $25, and $25, respectively, on Monday.

Article continues below advertisement

EMC also saw a surge in its trading volume on Monday, to 117,642,000 stocks from a five-day average volume of 54,803,000 and a previous day’s volume of 51,872,000 stocks. It has earned 24 “buy” recommendations, 13 “hold” recommendations, and one “sell” recommendation and has been given an A rating by Standard & Poor’s.

Stocks at the bottom

The stocks at the bottom of the SPDR S&P 500 ETF (SPY) on October 12, 2015, were Eli Lilly (LLY), Noble Corporation (NE), and Transocean (RIG). The stocks yielded -7.8%, -7.7%, and -7.6%, respectively, on the day. Noble Corporation’s and Transocean’s stocks were hit due to a fall in oil prices.

Eli Lilly, which is in pharmaceuticals, tumbled on October 12 when the company announced its decision to terminate the development of its cardiovascular disease treatment evacetrapib. The drug and the research are said to lack efficacy. This termination is expected to incur $90 million in costs in the company’s fourth quarter, which will affect its earnings per share.

Now let’s take a look at the UK stock market.


More From Market Realist