Oct 13 (Reuters) - EMC Corp said it would pay Dell Inc $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.
(Reporting by Devika Krishna Kumar in Bengaluru; Editing by Don Sebastian) ((devika.kumar@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +918067492214; Reuters Messaging: Reuters Messaging: devika.kumar.thomsonreuters.com@reuters.net))
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.
(Reporting by Devika Krishna Kumar in Bengaluru; Editing by Don Sebastian) ((devika.kumar@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +918067492214; Reuters Messaging: Reuters Messaging: devika.kumar.thomsonreuters.com@reuters.net))
