Stock Market Investment Strategies - 3.9 billion for Perot Systems

Dell has struck a deal with Perot system by agreeing to buy Perot at 3.9 billion. This price is at a 67.5% premium to the existing share value. i.e. Dell would be paying $30 per share. With this deal Dell is expecting to compete with the other two service majors Hewlett Packard and IBM. Dell and Perot systems combine would be 8 billion dollar service company.

Dell has made this acquisition with the intention of entering into the healthcare and government services. Perot has a strong focus in this arena. Dell is far behind in terms of services in comparison to HP and IBM. While both these companies went on the buying spree Dell had remaining quite all this while. Now having made its intentions clear, many analysts feel that the price that Dell is paying is too high.