Archive for the ‘Perot Systems’ Category

Reza Saleh Arrested For Insider Trading With Perot-Dell Deal

Amit Chowdhry | September 27, 2009 | 601 views | Comments
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This past Wednesday, the U.S. securities regulator charged Reza Saleh for insider trading in Dell’s acquisition of Perot Systems. Saleh made $8.6 million in profits by purchasing stock options ahead of the acquisition deal. Saleh sold them when Perot Systems stock soared on the day of the deal.

Saleh learned about the upcoming deal when working for a Perot Systems-related company. Perot Systems was bought out for $3.9 billion. The SEC filed a complaint with a federal court in Texas to freeze Saleh’s assets.

Saleh bought 9,000 Perot Systems call options at the time of the insider trading scheme. Saleh also told a Perot director that he knew about the deal when he was trading.

Dell To Get Into Consulting Through Acquisition of Perot Systems

Amit Chowdhry | September 21, 2009 | 316 views | Comments
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Henry Ross Perot started a company called Electronic Data Systems in 1962 and then sold it to General Motors. EDS was responsible for General Motor’s IT services. Then EDS was bought out by Hewlett Packard for $13.9 billion in May 2008. Another one of Ross Perot’s company has been acquired today called Perot Systems. Perot Systems was founded in 1988 and has been sold to Dell Inc. for $3.9 billion.

All of the biggest PC manufacturing companies has a strong branch of consulting arms. IBM Global Services makes about $58.9 billion. Between HP and EDS’ collective business services, they made about $38 billion as of 2007. And Dell’s Perot Systems made about $2.8 billion in 2008 revenues.

Based on how many shares Perot Systems has on the market, Dell will be buying them each at $30 per share. This is a 67% premium based on Perot Systems’ stock price on Friday of $17.91. The deal is expected to close during Q4 of Dell’s fiscal year. Perot Systems will continue to operate in Plano, Texas. Dell itself is based in Round Rock, Texas which is less than 250 miles away.