When Dell's purchase of EMC Corp. is finalized later this year, some EMC executives stand to make millions through stock and cash option payments.
According to SEC filings filed Tuesday, some EMC executives will make millions off the merger from stock units and cash. Here are some of the executives who will receive the biggest awards:
*CEO Joe Tucci gets 64,384 shares and $13.9 million in cash.
*EMC Vice Chairman William Teuber Jr. gets 25,507 shares and $5.5 million in cash
*David Goulden, the CEO of EMC Information Infrastructure, gets 63,061 shares and $13.6 million in cash.
*Howard Elias, president and COO of Global Enterprise Services, receives 48,201 shares and $10.4 million in cash
*Jeremy Burton, president of products and marketing, receives 50,070 shares and $10.9 million in cash.
Back in October, Round Rock-based Dell Inc. announced that it was planning to buy data storage company EMC Corp. for $67 billion, making in the biggest IT deal in history.
The purchase of EMC is expected to be completed before the end of the year.
The combined new company will have a new name: Dell Technologies. Dell Inc. is currently the largest private employer in Central Texas, with about 13,000 workers in the Austin area.
Dell Inc., EMC Corp and Denali Holdings Inc. – the holding company controlled by Michael Dell that will become the parent of the new, combined company – filed updated proxy statements with the U.S. Securities and Exchange Commission on Tuesday.
There aren’t a lot of stunning new revelations in the SEC documents, but here’s an update on where a number of things stand on various aspects of the Dell-EMC merger, according to the new filings:
*If the merger is completed as planned, the companies estimate that Denali Holdings would have $54.2 billion in debt related to the deal.
*The companies say the $67 billion merger will be financed through “a combination of equity and debt financing and cash on hand.” Denali Holdings Inc., the holding company controlled by Michael Dell, has “obtained committed equity financing for up to $4.25 billion” from various entities controlled by Michael Dell, and also has obtained debt financing commitments “for up to $49.5 billion in the aggregate from, among others, Credit Suisse, J.P. Morgan, Barclays, Bank of America, Merrill Lynch, Citi, Goldman Sachs, Deutsche Bank and RBC Capital Markets for the purpose of financing the merger and refinancing certain existing indebtedness of Denali and EMC,” according to the securities filings.
*EMC has not yet set a formal date for the shareholder vote on its merger with Dell Inc., according to the latest securities filings. EMC’s board recommends shareholders vote in favor of the merger.
*To date, 15 lawsuits have been filed seeking to stop the Dell-EMC deal, according to the securities filings. The lawsuits “seek, among other things, injunctive relief enjoining the merger, rescission of the merger if consummated, an award of fees and costs, and/or an award of damages,” according to securities filings.
*If the merger is not completed by Dec. 16, either Dell Inc. or EMC – or both – can terminate the agreement.
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