CA, Symantec, BMC gain after Dell reaches deal to go private

theflyonthewall.com

CA (CA), Symantec (SYMC), and BMC Software (BMC) are climbing after Dell announced earlier today that it had agreed to go private in a deal valued at $24.4B. The Dell deal may reignite speculation that the three large software vendors may carry out similar transactions, JPMorgan analyst John DiFucci wrote in a note to investors following the Dell announcement. DiFucci also noted that Microsoft (MSFT) had agreed to provide a $2B loan to finance Dell's transaction. Microsoft's partners will probably be pleased that the software maker chose to provide a loan to the acquirers, rather than obtain a stake in Dell, the analyst wrote. The software giant’s decision will reduce concerns that Dell will receive preferential treatment from Microsoft, DiFucci contended. The analyst maintained Overweight ratings on CA and Symantec, and Neutral ratings on BMC and Microsoft. In early afternoon trading, CA added 1.5% to $25.06, Symantec climbed 2% to $22.08, BMC rose 1% to $42.05, and Microsoft added 0.5% to $27.57.

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