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Report: Dell Mulling Reverse Merger With VMware, Special Committee Formed

VMware to make a decision to make a decision to make a decision on the merger with Dell Technologies, according to a report by Reuters.
Round Rock, Texas-based Dell Technologies and leading virtualization VMware have reportedly decided to explore options that include a merger between the two vendors. Last week, it was reported that it could help reserve merger with VMware.
Dell’s board of directors is scheduled to meet this week to discuss Dell’s approximately $ 50 billion in debt that has become a priority for Dell after the federal Tax Cuts and Jobs Act Bill was passed by Congress. The bill limits the tax deductibility of interest payments to 30 percent of a company’s earnings before interest, taxes, depreciation and amortization (EBITDA).
[Related: Report: VMware Might Buy Dell In Reserve Merger ]
Reuters said Dell plans to announce that it will be possible to reverse its merger with VMware or other alternatives such as filing for an IPO or asset divestures.
Through Dell’s $ 67 billion acquisition of EMC, the company already owns 81 percent of VMware.
The VMware is made of VMware shareholders, sources to Reuters.
However, according to a SEC 10-Q filing by VMware in November, if Dell becomes the holder of at least 90 percent of VMware’s outstanding stock, neither VMware’s board of directors nor VMware’s shareholders would be entitled to vote for a merger of VMware and Dell .
In addition, the merger would not be subject to the stringent “fairness” standard and would not be required to negotiate with a special committee of disinterested directors. “Said VMware in the 10-Q filing.
Dell is also considering a public share of its Pivotal Cloud computing venture software, according to Bloomberg. Dell puts $ 5 trillion to $ 7 billion, according to Bloomberg, with $ 5 billion to $ 7 billion worth of IPO.

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