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While Michael Dell might be crowing like a cockerel at taking his company private the question for Dell customers should to be this… Now carrying an extra $15 Billion in debt, what’s Dell going to slash & burn first? With new creditors to be paid what’s Dell going to stop investing in? You can put all this talk Mike is floating about new acquisitions aside, anything Dell might have been able to afford they could have bought as a public company and the bottom line is that Dell will owe it’s gang of four bankers $15B tomorrow which it did not owe them yesterday. Not only are Dell out of the market for any major acquisitions but their R&D spending position is now questionable as it will no longer be reported. While Mike may be ready to give himself to his corporate namesake body & soul, the bankers he’s borrowing from will be single minded in pumping cash out of Dell until it runs dry. Dell has already spent $10B+ on acquisitions to transform the company and have admitted those bets have fallen short of their goal, now they’re throwing another $15B into the pot like some down on their luck Vegas gambler thinking that if they up the bet yet again they’re sure to win this time and everything will come good. That type of guy goes home from Vegas flat broke and with a head full of shattered dreams. |
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