VMware CEO: Company 'not in a position' to speculate on Dell's plans

VMware CEO: Company 'not in a position' to speculate on Dell's plans

Michael Dell, who is chairman of the VMware board, said the company would "normally keep" deliberation confidential until a decision is made, but since Dell owns roughly 82 percent of VMware, it is required to make a public filing with the SEC. EMC had been a longtime owner of a majority stake in VMware.

That is why a reverse merger with VMware makes the most sense.

In the securities filing, Dell said it has not determined "which, if any, potential business opportunity to pursue and there can be no assurance that any potential business opportunity will be pursued, the terms thereof, or whether, if pursued, any such business opportunity would be consummated".

Combining with VMware would provide access to VMWare's $11.6 billion in cash, helping Dell trim its $52.5 billion debt pile. Dell is still dealing with a mountain of debt from its $67 billion purchase of data storage giant EMC Corp.in 2016 and the $25 billion cost to take the company private in 2013. Dell's hardware and VMWare's software offerings could potentially be marketed in one suite of products. Last month's US tax reform made servicing that debt more expensive due to caps on deducting interest expense. Any merger agreed before then would have to be structured as an acquisition of Dell by VMware: a so-called reverse merger. The potential business opportunities now being evaluated by Dell Technologies do not include the sale to a third party of Dell Technologies or the Issuer.

As expected, Dell Technologies Inc. acknowledged in an SEC filing today that it may go public or possibly merge with VMware Inc.

Reuters reported on Thursday that Dell planned to announce a review of a possible reverse merger with VMware, as well as other options, including an IPO or asset sales.

VMware CEO Pat Gelsinger addresses a news conference in Tokyo July 15, 2014.

January jobs report tops expectations as wages rise more than forecast
While the wage growth measures from this survey are quite noisy, they now show a 2.9 percent growth rate over the past 12 months. Construction added 36,000 jobs in January, with most of the increase occurring among specialty trade contractors (+26,000).

Dell also said on Friday that it could choose to not do a major business deal and instead continue operating as is.

Paul Sagan, Lead Director, VMware Board of Directors, said, "The VMware Board of Directors is committed to creating value for, and protecting the interests of, all stockholders".

VMware issued a separate statement to shareholders, saying that it's "not in a position to speculate" on Dell's potential decisions.

The company has struggled with fierce competition in the storage market, as cloud-based rivals such as AWS and Microsoft's Azure put pressure on prices. Dell's infrastructure chief, former EMC executive David Goulden, departed last fall, and the company has been working to reorganize storage operations. Oregon Public Employees Retirement Fund boosted its holdings in shares of Dell Technologies by 2.8% in the third quarter. But growing popularity of smart phones and tablets has squeezed the PC market, which shrank by 0.2 percent in 2017, according to International Data Corporation. The business had revenue of $17.82 billion during the quarter. Analysts expect that Dell Technologies Inc will post $4.72 EPS for the current fiscal year.

Dell also said in the filing that it was considering a "business combination" with VMware (vmw), without elaborating.

First Bank & Trust cut its stake in Dell Technologies Inc.

Related Articles

  • Do you have to pay Long Term Capital Gains Tax?

    Do you have to pay Long Term Capital Gains Tax?

    Will shares acquired prior to April 1 also be taxed? "The expectation was a reduction in corporate tax rates for all companies". Despite LTCG, the Individual Investor participation into the equity market through mutual fund will not be dying soon.
    6 of the best photos as Aubameyang trains with Arsenal

    6 of the best photos as Aubameyang trains with Arsenal

    Asked if he regretted not signing a defender, the Frenchman conceded: "Yes, because our defensive numbers are not good enough". On the attacking front he'll need to find room to accommodate his plethora of options. "Three more years with @ Arsenal! ".
    Man Smiles Before Being Executed For Killing His Daughters

    Man Smiles Before Being Executed For Killing His Daughters

    Battaglia killed his daughters Faith, nine, and Liberty, six, during a scheduled visit a year after his divorce from Ms Pearle. Battaglia's execution was delayed twice before so his mental competency could be evaluated, the Dallas Morning News reported.
  • United States  to halt new protected statuses for Syrians

    United States to halt new protected statuses for Syrians

    Activists fear that by blocking new applicants, those Syrians already in the United States applying TPS will have nowhere to go. The decision will be felt hardest in California, Michigan and Texas, top destinations for Syrians living in the United States.
    UAE claims world's longest zipline

    UAE claims world's longest zipline

    The zip-line enables visitors to travel at a speed of up to 120-150km/h at an elevation of 1,680 meters above the sea level. For almost three minutes, riders are suspended above the mountain as they glide past rocky terrain.
    Google crossed $100 billion mark in revenue in 2017

    Google crossed $100 billion mark in revenue in 2017

    It posted a loss of $3.02 billion for the quarter due to the $9.9 billion charge tied to changes to the United States tax system. The information services provider reported $9.70 EPS for the quarter, missing the consensus estimate of $9.99 by ($0.29).
  • Turkey: Tax office blast caused by bomb, attacker killed

    Turkey: Tax office blast caused by bomb, attacker killed

    A civilian in southern Turkey was killed by a rocket which was sacked from northern Syria, a local media reported on Friday. It has also reportedly witnessed members of the fascist Grey Wolves group fighting alongside the Turkish invasion force.
    Kremlin 'very glad' at lifting of ban on 28 Russian athletes

    Kremlin 'very glad' at lifting of ban on 28 Russian athletes

    Earlier 39 athletes - who were part of the 2014 Winter games in Sochi - had approached the CAS to appeal against the suspension. The IOC warned that CAS's verdict on the 28 "may have a serious impact on the future fight against doping".
    Premier League matchweek 26: Staff picks and predictions

    Premier League matchweek 26: Staff picks and predictions

    The last time Liverpool lost both league games to Spurs with the same manager was in 1986-87 (Kenny Dalglish). Spurs go into the match on the back of a dominant victory against Manchester United on Wednesday.
  • 'Modicare', World's Largest Health Care Scheme To Cost 11,OOO Crore Per Year

    'Modicare', World's Largest Health Care Scheme To Cost 11,OOO Crore Per Year

    Kumar said around 6-7 crore persons fall into poverty each year due to medical expenses and they are often in non poor category. Nadda did not elaborate on the modalities of how the government proposes to go about implementing the scheme.
    Amazon's Net Income Jumps 153% in Fourth Quarter

    Amazon's Net Income Jumps 153% in Fourth Quarter

    The higher revenue was primarily due to the holiday season as more shoppers transitioned to e-Commerce for their holiday gifts. Analysts at Jefferies, Wedbush and Credit Suisse were the most bullish, boosting their price targets to $1,750.
    Date confirmed for wedding of Princess Eugenie and Jack Brooksbank

    Date confirmed for wedding of Princess Eugenie and Jack Brooksbank

    It was a complete surprise. "But it was the flawless moment, we couldn't be happier". "We knew it would end up this way". Eugenie's engagement ring features a pink padparadscha sapphire surrounded by smaller diamonds on a yellow gold band.