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Rackable Systems (RACK) “rebuffed more than one strategic proposal from Dell (NASDAQ:DELL)” as far back as last summer, according to a research note Wednesday by RBC Capital analyst Thomas Curlin. He says a deal with Dell was turned down “given management’s expectations for improving execution, which ultimately failed to materialize.”

Looking forward, Curling says, he thinks Rackable is following a dual strategy “whereby attempts to bring Dell back to the table are executed concurrently with a major realignment of internal processes.”

Curling says his estimates for Rackable “remain significantly below Street consensus, as we assume higher operating expenses while remaining cautious on near-term revenue visibility.”

Rumors of a Dell bid for Rackable resurfaced recently, including a story last week in the FT.

Rackable Wednesday is down 7 cents at $12.01; Dell is down 15 cents at $26.23.

DELL vs. RACK 1-yr chart:
dell rack

Source: Rumors Of A Dell Bid For Rackable Resurfacing