Dell Technologies Inc is nearing a deal that would allow the closely held technology giant to trade publicly again, by combining with a stock that tracks its stake in software maker VMware Inc, the Wall Street Journal and other media reported on Sunday, citing people familiar with the matter.
Dell, the world’s largest private technology company, planned to announce as soon as yesterday that it was planning a share swap to acquire the DVMT tracking stock, the Journal said.
DVMT is valued at about US$17 billion, while VMware’s market cap is about US$60 billion.
Dell could not be reached for comment and VMware declined to comment.
Founder Michael Dell has considered a variety of options to streamline his multicompany tech empire and help the business manage a massive debt load. The current structure of Dell’s companies is tangled.
Dell took the company private for about US$25 billion in 2013 with investment firm Silver Lake. The tracking stock was created to help Dell finance its US$67 billion purchase of data storage company EMC in 2016, the largest technology takeover ever at the time.
The deal was mostly cash, but the rest was paid through the new security linked to part of EMC’s interest in VMware.
EMC owned a controlling stake in VMware and the rest of VMware is publicly traded, as is the DVMT tracking stock.
DVMT has almost doubled since the stock was issued, closing at US$84.58 on Friday.
Palo Alto, California-based VMware makes virtualization software that helps maximize workloads on servers, as well as cloud and device management tools.
Round Rock, Texas-based Dell will offer DVMT shareholders “significantly” more of its privately held shares than cash, CNBC reported, citing people familiar with the matter.
DVMT will be acquired at a premium in line with standard transactions and VMware will pay a US$9 billion dividend to DVMT shareholders as part of the agreement, CNBC said.
The transaction would give Dell more direct influence over VMware’s future, it added.
VMware is more than 80 percent controlled by holders of the Dell tracking stock and Dell’s DHI shareholders — Michael Dell and Silver Lake.
Dell, which missed out on the cloud-computing wave, has tried to develop next-generation solutions to enable the Internet of Things.
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
Nvidia Corp CEO Jensen Huang (黃仁勳) today announced that his company has selected "Beitou Shilin" in Taipei for its new Taiwan office, called Nvidia Constellation, putting an end to months of speculation. Industry sources have said that the tech giant has been eyeing the Beitou Shilin Science Park as the site of its new overseas headquarters, and speculated that the new headquarters would be built on two plots of land designated as "T17" and "T18," which span 3.89 hectares in the park. "I think it's time for us to reveal one of the largest products we've ever built," Huang said near the
China yesterday announced anti-dumping duties as high as 74.9 percent on imports of polyoxymethylene (POM) copolymers, a type of engineering plastic, from Taiwan, the US, the EU and Japan. The Chinese Ministry of Commerce’s findings conclude a probe launched in May last year, shortly after the US sharply increased tariffs on Chinese electric vehicles, computer chips and other imports. POM copolymers can partially replace metals such as copper and zinc, and have various applications, including in auto parts, electronics and medical equipment, the Chinese ministry has said. In January, it said initial investigations had determined that dumping was taking place, and implemented preliminary
Intel Corp yesterday reinforced its determination to strengthen its partnerships with Taiwan’s ecosystem partners including original-electronic-manufacturing (OEM) companies such as Hon Hai Precision Industry Co (鴻海精密) and chipmaker United Microelectronics Corp (UMC, 聯電). “Tonight marks a new beginning. We renew our new partnership with Taiwan ecosystem,” Intel new chief executive officer Tan Lip-bu (陳立武) said at a dinner with representatives from the company’s local partners, celebrating the 40th anniversary of the US chip giant’s presence in Taiwan. Tan took the reins at Intel six weeks ago aiming to reform the chipmaker and revive its past glory. This is the first time Tan
RSS