Dell says it will explore IPO or merger with VMware | Latest News
(Reuters) - Dell Technologies Inc. said on Friday it is considering a public offering of ordinary shares or a combination with VMware Inc. (VMW.N), a public affiliate vendor of business software. Dell, the largest private technology company in the world, is under pressure to boost profitability after its EMC Corp's debt acquisition acquisition for $ 67 billion in 2016 failed to meet its financial targets, hurting intensified price competition. The combination with VMware will give VMWare $ 11.6 billion of money to help clean up $ 52.5 billion in its debt pocket. Last month's tax reform in the United States has caused this debt to be more expensive due to restrictions on the deduction of interest costs. The combination would also be made by Dell a publicly listed company that offers a way for Silver Lake, a private investment firm, to start selling its 18 percent stake if it chooses. Silver Lake helped the bank's Dell CEO, Michael Dell, to take over a private $ ...