Dell is considering a reverse-merger with VMware, where Dell and its tracker stock, DVMT, would be rolled into one publicly-traded company. Talks between Dell and VMware have continued this week about a deal, according to sources familiar with the matter, who asked not to be named because the discussions are private.
A deal between Dell and VMware remains tricky, said the people, because VMware shareholders will need to be convinced a transaction is in the company’s best interest. Talks between the two companies continue to center around synergies and crafting a deal that will make VMware investors pleased, said the sources.
Icahn publicly and unsuccessfully challenged Michael Dell in his 2013 effort to take Dell private. Icahn accumulated an 8.9 percent stake in Dell and made a counter-bid for Dell, along with Blackstone Group. Michael Dell and Silver Lake ultimately acquired the company for $ 24.4 billion, a price tag Icahn said “greatly undervalues it.”