Chinese Government Seen Killing Dell Deal

Shares of computer and server maker Dell took a slight dip after an analyst suggested the Chinese government put the kibosh on a rumored agreement for Dell to buy Beijing-based Founder Electronics' PC division.

ThinkEquity analyst Eric Ross, who has a "Sell" rating on the stock, said that even though the acquisition would make strategic sense, and despite various reports that Dell would buy the division for anywhere from $400 million to $800 million, he doesn't think it will happen.

"Our sources close to the deal indicate it will not occur, killed by pressure from the Chinese government," Ross wrote in a note to investors. "Additional rumors have circulated that China's state-run Haier Group would buy the PC division."

Contact U.S. News


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More

Don't Miss

U.S. Video

  • Mad Money's Jim Cramer says call your broker and get a piece of Shake Shack's IPO. The deal is practically engineered to have big pop out of the gate, he says.

  • Adam Nash, CEO, Wealthfront and a 2014 CNBC Disruptor 50, discusses robo-advisors and what they can do for the investor.

  • Mad Money host Jim Cramer Jim Cramer thinks this tape is remarkably healthy and shares 8 positive signs a market is healthy enough to invest in.