Dell starts raising funds for possible future acquisitions
Dell Inc. said it will float bonds as it raises money potentially for new acquisitions. The company also commented last Tuesday that it might use the money for stock purchases, capital investments and general corporate purposes.
It looks as if Dell is getting ready to make sure it has enough funds to pursue future acquisitions. Just last week, Hewlett-Packard’s (HP) stronger balance sheet enabled it to trump Dell and win storage vendor 3Par, after both companies Dell and HP went into a bidding war that started with Dell offering US$1.15 billion and ended with HP acquiring 3Par for US$2.4 billion.
Dell has acquired several companies in the past year, and it looks like they are looking to acquire more in the near future. This move will help Dell to pursue other targets in the storage, networking and cloud computing arenas, helping the company expand its corporate technology services and products.