Dell Nears Deal to Swap Out DVMT Tracking Stock

By Dana Cimilluca and Dana Mattioli

Dell Inc. is nearing a deal to combine with shares that track its fast-growing VMware Inc. virtualization-software unit, a move that would give the PC and data-storage giant a public listing, according to people familiar with the matter.

Dell plans to announce as early as Monday that it is acquiring DVMT tracking stock via a share swap, according to people familiar with the matter.

Terms of the agreement, which could still fall through, couldn't be learned. DVMT has a market capitalization of nearly $17 billion, while VMware's is nearly $60 billion, after the shares rose this year on the possibility of a deal.

The move would culminate a strategic review Dell has been conducting for months. Other options it considered include a combination with VMware itself or a straight IPO, the company has said.

More to come

Write to Dana Cimilluca at dana.cimilluca@wsj.com and Dana Mattioli at dana.mattioli@wsj.com

(END) Dow Jones Newswires

July 01, 2018 15:30 ET (19:30 GMT)

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