Giant tax bill could see Dell-EMC deal break down

Report claims Dell insiders are worried about $9bn tax bill

The giant Dell-EMC deal could be derailed entirely as Dell execs worry about a $9bn (£5.94bn) tax bill, according to a report.

Re/Code reports that Dell execs are concerned the company could be slapped with $9bn in costs following a regulatory review, citing sources familiar with the matter.

The execs fear that certain elements of the deal might not qualify for the type of tax treatment they bargained for when working it out, meaning the company would have to pay much more than it had planned.

The planned merger is expected to be worth $67bn - the biggest tech acquisition ever.

Under the terms of the proposed takeover, which was announced a month ago, EMC shareholders will receive $24.05 per share in cash in addition to tracking stock linked to its interest in VMware.

The transaction is expected to be financed through a combination of new equity from Michael Dell, MSD Partners, Silver Lake and Temasek, as well as a new debt financing.

It is subject to closing conditions including regulatory and stockholder approvals and is expected to close between May and October next year.