EMC to pay Dell $2 billion if it opts for higher bid in go-shop period

[October 13, 2015]  (Reuters) - EMC Corp said it would pay Dell Inc [DI.UL] $2 billion if its about $67 billion deal with the world's no. 3 computer maker is terminated for a "superior proposal" before Dec. 12.

The record merger agreement announced on Monday includes a 60-day 'go-shop' provision that allows EMC to solicit bids from other parties and pay a discounted breakup fee to Dell if a deal is made with another company.

EMC said on Tuesday it will pay $2.5 billion if it opts for a superior offer after the go-shop period.

The deal also requires Dell to pay EMC a termination fee of $4 billion under specified circumstances and in certain instances, an alternative termination fee of $6 billion, EMC said in a regulatory filing. (http://1.usa.gov/1MonKTB)

(Reporting by Devika Krishna Kumar in Bengaluru; Editing by Don Sebastian)
 

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