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Fusion-io, Inc. Message Board

  • fastmoneypete fastmoneypete May 11, 2012 1:53 PM Flag

    FIO rejected $33 DELL bid

    1:06 Positive unconfirmed rumors are now circulating about Fusion-IO (NYSE: FIO). Hearing chatter saying that the company refused a $33 /share bid from Dell (NASDAQ: DELL).
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    • news agencies have it

      Shares of Fusion-io (NYSE:FIO) jump, on chatter that the firm has rejected a bid of $33 per share from Dell (NASDAQ:DELL). No comment was given in response by the latter.

    • You cats are so guillable./do you really think the price would be 21 bucks if they really had a offer.....someone made some new bagholders today so they could get out. Dont be dumb

    • Sold a few days ago, but bought back just now. I think the Dell offer is legitimate and here is why:

      1. Dell just ended their EMC partnership early with EMC.They may be looking to acquire FIO to directly compete with EMC better.

      2. Dell bought three companies in four days back in April. They aren't afraid to buy.

      3. Moreover, they aren't afraid to pay big bucks as exemplified by their Equallogic purchase $1.4B cash in 2007 and $960M for Compellant. Note the article said "Dell is using acquisitions to expand its data-center offerings, such as server computers and storage, and lessen its dependency on the desktop and notebook market, where profit margins typically are lower."

      4. Finally, Dell is moving towards high margin business. Note the following: they didn't have the high margin drives that they wanted due to floods and this will effect them for the remainder of CY12, enterprise sales are doing well, and they want to be a one stop shop for business customers. I think these are potential factors that could support a Fusion-IO buyout.

      • 2 Replies to barnacles1234
      • Dell bought Equallogic for $1.4B when Equallogic only had $100M in sales. Source: en.community.dell.com/dell-blogs/dell-shares/b/dell-shares/archive/2010/08/16/dell-to-acquire-3par.aspx

        Fusion-IO has >$400M in sales. A sale for >$4B would be consistent with the sale of Equallogic when comparing revenue. Note that Dell reported that they grew Equallogic revenue >$800M over three years.

        Also note that Michael Dell pointed out that his company makes more profit from selling its own storage, and will invest more money on storage products. Source: itknowledgeexchange.techtarget.com/storage-soup/dell-loses-ground-in-storage-despite-equallogic-success/

      • Yahoo won't let me post the links, so you'll have to research on the web and verify the information I posted.

    • Dell can dream, but EMC, HP, ORCL, CSCO, and a handful of others are likely to outbid them if Dell decides to come hostile after being thwarted.

      As for duty to disclose, if they receive an offer they consider to be worth serious consideration, they not only need to disclose that to shareholders, they need to obtain shareholder approval. If Dell has approached FIO, we are going to learn more quickly.

      Given the stock's underperformance of late, maybe Dell will come back with a serious bid (say $40) and get the bidding process going. A Sunday BOD meeting would be just fine with me.

      • 1 Reply to jlbhgb
      • you are correct, and i would like to add to this.

        the CEO is the first to receive any offer, if he/she decides this is an offer worthy of bringing before the board, then the board is gathered for a special meeting. if the board votes yes to accept the bid then it is brought to the shareholders.

        remember only 51 percent of shareholders is needed to accept a bid. im sure 51 percent of the voting power is held by private and institutional holders.

        so what it comes down to is what price would the big boys / girls accept.

        i have stated before,,,,,this is probably a rumor started by the ones who are way under right now after the sell-off, unfortunately wallsteet has an awful way of punishing those involved,,,,,,,hitting them where it hurts,,,in the wallet.

        when we had a run up before due to a couple of well timed upgrades and buyout rumors, which came in when the stock was around 24 - 25. it had dropped down to around 21.75 after the last earnings.

        wallstreet didnt like the margins then either and dropped it back from around $30.50. when then didnt like the margins again, the second time,, they bailed.

        these rumors always seem so well timed. when was the last time a buyout rumor came when the stock was above say,,,,,,,30 or 33?

        see the connect here?

        where would the stock price be if after the last earnings,,,,those upgrades didnt hit at the same time the INTEL buyout rumor hit? i believe below at least $18.

        the stock lost 30%.....thats big, in a matter of 11 trading days. the company had to stop the freefall, or a group of those who are getting crushed right now.

        this could be below 20 right now. nothing is propping it up right now, and maybe nothing coming out in the next week or so. this may get worse.

        im not surprised the stock is only at 21.40 and dropping into the close, there are not many falling for this AGAIN.

        sorry just my take on it.

    • Wish this was true but I don't believe it
      Here is why:
      % of Shares Held by All Insider and 5% Owners:
      10%

      % of Shares Held by Institutional & Mutual Fund Owners:
      23%

      % of Float Held by Institutional & Mutual Fund Owners:
      26%

      Number of Institutions Holding Shares:
      95


      SO, FIO is required to post any offer for received...am I right ?

 

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