Menu
Dell to interview banks for IPO instead of acquisition

Dell to interview banks for IPO instead of acquisition

Tensions increasing between tech giant and investors

Michael Dell (CEO - Dell Technologies)

Michael Dell (CEO - Dell Technologies)

Credit: Dell Technologies

Dell Technologies plans to interview banks this week to potentially go public through an initial public offering rather than doing so through a proposed acquisition that has drawn resistance from some investors, the Wall Street Journal has reported.

The Round Rock, Texas-based computer company said this summer it would pay US$21.7 billion in cash and stock to buy back shares tied to its interest in software company VMware to return to the stock market without a public offering.

The move to interview banks for an IPO shows there are increasing tensions between Dell and investors who have said the deal undervalues some of its stock, the Journal reported.

"Dell would be one of the largest U.S. companies to launch an IPO," the Journal wrote. "It is far from certain that it will ultimately do so, however, and interviewing banks could be seen as a tactic to put pressure on investors to support the current deal.

Dell has postponed a roadshow for the VMware deal that was scheduled for this week by a week, a person familiar with the matter told Reuters.

The original plan to buy back shares tied to VMware would allow Dell to bypass an IPO process in which Dell would have faced scrutiny over its US$52.7 billion debt pile.

Dell did not immediately return a request for comment.

(Reporting by Jessica DiNapoli and Liana Baker; Editing by Will Dunham)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags VMwareMIchael DellDell Technologies

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments