- VMware is surging in early trading.
- VMware shareholders will choose between receiving cash or stock in the transaction.
- Dell shares are also rallying.
- Watch
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VMware is popping after Dell says it will buy out shares tracking its subsidiary (DVMT, VMW)
Dell is buying out shares that track the performance of its subsidiary VMware, a software service. VMware shareholders will choose between receiving cash or stock in the transaction.
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VMware is surging Monday morning, trading up 9.56%, after its parent company, Dell Technologies, said it will buy out the shares that track its performance as part of a broader effort to simplify its ownership structure.
Dell is offering VMware shareholders 1.3665 class C common Dell shares in exchange for each VMware share. Alternatively, VMware shareholders could opt for $109 in cash. After VMware shareholders choose whether they want cash or Dell stock, they'll own between 20.8% and 31% of Dell.
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