Dell’s IPO could be contingent on acquiring VMWare’s tracking stocks

While in July Dell had stated it would come back with an IPO, acquiring VMWare’s tracking stock is a competing priority.

In a significant development, Dell Technologies Inc has confirmed that it has met with a few investment banks to explore an initial public offering (IPO); this plan will kick in only if its plan to acquire VMware Inc does not come through.

In July, Dell, which already owns 80% of VMware, stated it would acquire the balance portion in a cash-and-stock deal worth $21.7 billion and return to the public market.

Several hedge funds, including Elliott Management Corp and Canyon Capital Advisors LLC, as well as Carl Icahn, have resisted Dell’s effort to buy back the “tracking stock” from them.

Incidentally, as per a regulatory filing, Dell’s board could potentially not go ahead with the IPO even if the VMware deal does not go through.


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