Dell low-balling Compellent? -

Dell low-balling Compellent?

This week, Dell apparently offered Compellent $27.50/share in an effort to acquire the company. The interesting part is that Compellent's stocks were trading at $33.65. Dealbook  at the NY Times cleverly dubs this a “takeunder,” but I would argue that the stock price is probably up there precisely because of takeover rumors. Now, I haven't done a good analysis on this, but what do you think? Also, the whole sector has been on the uptick because of the dealings over at Seagate, so all of this could be inflation based on market forces rather than Compellent's performance.

According to its website, Compellent, an enterprise storage solutions company, has no debt. An enviable position to be sure. And the company seems to be doing well on deployments, customer satisfaction, and awards. Both Dell and Compellent released a joint announcement  today that they were in talks “regarding a possible business combination involving the two companies.” They cite the $27.50 price in the press release, which I find intriguing.

Anyway, what do you think, is Compellent a good match for Dell? I'm thinking it might be.

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