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Fly News Breaks for August 7, 2015
EMC, VMW
Aug 7, 2015 | 08:22 EDT
Jefferies analysts John DiFucci and Brad Zelnick say recent speculation around a "downstream merger" whereby VMware (VMW) acquires EMC (EMC) "simply does not make sense." Such a deal would be dilutive, the analysts tell investors in a research note. They believe VMware is worth much more than it is trading at, and note a full takeover by EMC would be accretive by at least 13%. The analysts keep a Buy rating on VMware with a $104 price target.
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