Dell To Announce EMC Purchase On Monday: Reports

(RTTNews) - Dell Inc. (DELL) will announce that it is buying data storage company EMC Corp.(EMC), according to media reports. The deal could be announced as early as Monday, reports specified.

The deal would create a computing giant combining EMC's leadership in digital storage, with Dell's share of the market for servers, which businesses use for computing tasks.

Dell plans to pay slightly more than $25 a share in cash, plus tracking stock in cloud software company VMware Inc. (VMW) valued at about $8 for each EMC share, said the person, who asked not to be identified because the matter isn't public.

The deal hasn't been signed yet because the parties as of late Sunday were still negotiating a so-called collar around the VMware stock, the person said.

In a stock merger agreement, collars offer buyers and sellers protection against steep fluctuations in the price of a security in the time between signing the deal and closing. Spokesmen for Dell and Hopkinton, Massachusetts-based EMC didn't immediately respond to messages seeking comment.