Dell Says it will Explore IPO or Merger with VMware
Computer maker Dell said on Friday it was considering a public offering of common stock or a combination with business software maker VMware, its publicly held subsidiary.
Dell, the world's largest privately held technology company, is under pressure to boost profitability after its debt-laden acquisition of data storage provider EMC for $67 billion in 2016 failed to meet financial targets, hurt by intensifying price competition.
Combining with VMware would provide access to VMWare's $11.6 billion in cash, helping Dell trim its $52.5 billion debt pile. Last month's U.S. tax reform made servicing that debt more expensive due to caps on deducting interest expense.
The combination would also make Dell a publicly listed company, offering a path for private equity firm Silver Lake to b...
