8/2/2023 0 Comments Emc stock splits"This should be the best trading tracking stock ever," he said.ĭespite the poor reception in the market, Elliot Management, the activist hedge fund that has been pressing EMC to make a deal since last year, issued a statement strongly backing the Dell offer. EMC CEO Joe Tucci asserted that the new tracking stock would trade closely to the price of VMWare common stock because VMWare is already a public company with a long public history. On Monday, several analysts questioned Dell's proposed tracking stock structure on a call with EMC and VMWare top executives. EMC shareholders will get tracking stock representing 0.111 shares of VMWare for each EMC share they own. The new shares will not be actual common stock of VMWare, however, but issued by Dell, a private company, to track or represent 65% of the value of the 343 million shares. The remaining $9.10 of the announced $33.15 offer comes in the form of a tracking stock linked to part of the value of the 343 million shares of VMWare that EMC currently owns. ![]() ![]() Shares of VMWare ( VMW), the software company 80% owned by EMC, fell 10% to $71.ĭell said it would pay $24.05 in cash for each EMC share. Long suffering shareholders of EMC ( EMC) have been hoping for years for a transformative merger or restructuring to bail out their investment.īut there's some disappointment that the deal that has finally materialized, a supposed $67 billion buyout offer from Michael Dell, in part relies on tracking stock, a much-hated Wall Street financial engineering tactic with a mixed history.ĮMC officials said the Dell offer should be valued at $33.15 per EMC share, but the stock rose less than 1% to $28.07 in midmorning trading, reflecting the disappointment.
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