The U.S. computer services industry is back in favor, after a decade of struggling to cut costs and compete with offshore firms from India and elsewhere. At least that would be the obvious conclusion to draw from a recent string of multibillion-dollar deals.
With something like $10 billion in cash, Dell wouldn't seem to be stretching itself to buy Perot Systems. But the $3.9 billion it is offering represents a 67 percent premium, so Dell shareholders should probably ask themselves whether Perot's business is worth so much.
-- Eric Auchard is a Reuters columnist. The opinions expressed are his own --
By Eric Auchard
LONDON, July 22 (Reuters) - Dell Inc needs to reinvent itself to cope with falling margins for key products and a spate of mergers which are rapidly reshaping the competitive scene.
from Summit Notebook:
The PC giant's head of enterprise sales was quick to point out flaws in the stripped-down, no-frills mini-computers that have garnered rave reiews for their ultra-portability and anywhere-connectivity.