Merrill on Sun-Storage Deal
The $4.1 billion on a tape-backup company is not such a good idea. I thought so, and now Merrill is letting its displeasure know loud and clear. “We’re neutral to slightly negative on the acquisition. Sun used $3.1 billion of its $7.5 billion in cash for a deal that doesn’t seem to accelerate revenue growth given that tape is a mature market. If Sun management called the HP/Compaq merger the collision of two garbage trucks, what is a Sun/Storage Tech combination?”
It’s the merger of two truck bombs I suspect.
right said doc who. cannot believe the delusional behavior at sun, but then what do we know .. all that playing golf in california sun has had some sort of a negative effect on scott!
Two garbage carrying barges?
This week’s Barron’s “Is Sun’s Big Deal a Big Zero?” echoes what others are saying. Instead of figuring out how StoragTek fit into Sun’s business plans, Scott went impulse shopping. Now that cash hoard suddenly doesn’t look that big anymore.