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Dell & Acer?

The consolidation would fetch better component prices and rates from contract manufacturers
By Maureen O'Gara
Article Rating:
May 9, 2009 06:45 AM EDT
Reads:
 2,234

Sanford Bernstein ace analyst Toni Sacconaghi suggests that Dell buy Acer, the Taiwan PC company nipping at Dell's heels and threatening its place as number two in market share in the U.S. The pair was tied in Q1 according to Gartner. He thinks the deal could get done for ~$5.7 billion, a 20% premium, boost Dell's revenue growth 3% and up its EPS 12 cents a share. The consolidation would fetch better component prices and rates from contract manufacturers and give Dell broader exposure overseas in the growth markets in both laptops and netbooks. Dell has about $8.4 billion in the bank. With Acer's lower OPEX, there are those who would suggest that Acer buy Dell.

Published May 9, 2009 – Reads 2,234
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Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

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