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Sunday 4 December 2016

Thousands of Dell and EMC Irish staff face wait on jobs

Joe Tucci
Joe Tucci

The parent companies of two of Ireland's biggest employers - both of which have operations in Dublin - are in merger talks, that could potentially have implications for thousands of Irish jobs.

Dell, the world's third- biggest personal computer maker, is in talks to combine with all or part of computer data storage giant EMC.

EMC is looking at ways to appease shareholders disappointed with returns and its efforts to replace an outgoing chief executive. Over 5,300 people are employed by the two companies in Ireland, between Dublin, Limerick and Cork.

According to people familiar with the discussions, who asked not to be identified, negotiations may not result in a deal.

operations

It is not known what effect, if any, the possible merger will have on the companies' Irish operations.

TV station CNBC reported that Dell could offer more than $27 (€24) per share for EMC.

EMC shares have declined 13pc this year, leaving it with a market value of about $50bn. The company has been under pressure to boost its share price from activist investor Elliott Management.

EMC also needs to find a successor for chief executive Joe Tucci, who was supposed to step down in February.

Dell, which was taken private in a deal worth about $25bn in 2013, has about $12bn in debt and would need about $40bn in financing to pull off the deal, according to CNBC, which claimed that an agreement could be a week away.

The biggest technology deal to date is Avago Technologies's $37bn offer for fellow chipmaker Broadcom, announced in May.

An EMC spokeswoman said the firm has over 3,000 employees in Ireland, with a team of 50 salespeople in Dublin while the rest are employed at the company's 'Centre of Excellence' in Cork. She declined to comment on the merger talks.

A Dell spokeswoman said the firm "does not comment on rumour or speculation". She said the company employs 2,300 people between its three campuses in Cork, Limerick and Dublin.

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