#1 Dell would have to pay an enormous valuation for the company at/near/above IPO price. #2 Rax is currently a large customer of Dell -- buy the services piece only to lose the hardware sales, doesnt make sense to me. #3 Mgmt is not likely a seller at/near current levels. #4 Dell is said to have gotten a look at a private equity deal long ago and didnt even want to take a look, why do it now then at a much much much higher valuation?
Full disclosure, I'm short the shares personally.