Dell Technologies to Sweeten Deal for DVMT Tracking Shares--Update
November 14 2018 - 1:04PM
Dow Jones News
By Cara Lombardo and Dana Cimilluca
Breaking News...
Dell Technologies Inc. plans to sweeten a $22 billion deal to
buy out an affiliate and return to the public markets, according to
people familiar with the matter -- five months after the PC and
data-storage giant's initial proposal sparked intense shareholder
opposition.
Under the new deal, which could be announced as soon as this
week, shareholders of the affiliate, known as DVMT, would receive
cash and stock worth more than the current $109-a-share price, the
people said. Exactly how much will depend on how DVMT shares trade
in a future period. Dell also will increase the $9 billion cash
portion of the deal by about 50%, the people said.
Shareholders of DVMT, an affiliate that tracks Dell's interest
in the fast-growing VMware Inc. software unit, may also receive a
seat on the newly public Dell's board, they said.
It is still possible, as always, that the deal could fall apart
at the last minute. Assuming it goes forward as expected, it would
salvage Dell's effort to streamline its complicated structure and
return to the public markets without conducting a traditional
initial public offering.
(More to Come)
Write to Cara Lombardo at cara.lombardo@wsj.com and Dana
Cimilluca at dana.cimilluca@wsj.com
(END) Dow Jones Newswires
November 14, 2018 12:49 ET (17:49 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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