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Buy it now, $DVMT Each share of Dell Technologies Class V stock will be converted into about 1.37 shares of Class C common stock, Dell Technologies said. The

Buy it now, $DVMT Each share of Dell Technologies Class V stock will be converted into about 1.37 shares of Class C common stock, Dell Technologies said. The implied value of the Class V shares is $109 a share

RyanShook 8y ago
The stock popped 9% today but is still trading about $17 away from the $109 Dell offered per share. Sounds like a good buy but I don’t know enough of the details of the new structure or deal to know.
- loeg 8y ago
  Reasons it's trading below $109: * The deal isn't a done thing. Shareholders could reject it. (Why would they? Beats me. They can take the premium and turn around and buy ordinary VMW shares, right?) * The deal is anticipated to close in Q4. It may take longer, and end of Q4 is six months out anyway. 109/92 is an 18.5% premium. If you can generate more than 18.5% on cash over six months, or over the longer period of time you anticipate the deal taking to close, there's no reason to buy DVMT. That said, 18.5% in six months is a pretty fantastic 37% annualized return, so the market much be pretty skeptical about the timeframe, chances of the deal closing, or both. Obligatory disclaimer: I'm a Dell employee (software engineer). I don't own any shares of DVMT or VMW (aside from any fractional ownership via broad-market index funds).
  - arbitragy 8y ago
    Deal wont close. DVMT is a tracker for VMW at 1.015:1. It should trade at 164.4 (given a 162 price for VMW). Offer is ~1/3rd in cash that Michael Dell isn't even paying for, it is a special dividend from VMW. Other 2/3rds is an egregious swap for private Dell shares in exchange for DVMT tracker shares. A disgusting deal all around designed to benefit Michael Dell at the expense of common shareholders. It won't be approved.
    - Blackstone4 8y ago
      Agreed that this is a great deal for Dell and its investors..... They are going to profit from the discount to the tune of ~$8bn (see my analysis in another comment). Stranger things have happened so the deal may go through. I bought more DVMT yesterday to tender it for $109.

RyanShook 8y ago

The stock popped 9% today but is still trading about $17 away from the $109 Dell offered per share. Sounds like a good buy but I don’t know enough of the details of the new structure or deal to know.

loeg 8y ago
Reasons it's trading below $109: * The deal isn't a done thing. Shareholders could reject it. (Why would they? Beats me. They can take the premium and turn around and buy ordinary VMW shares, right?) * The deal is anticipated to close in Q4. It may take longer, and end of Q4 is six months out anyway. 109/92 is an 18.5% premium. If you can generate more than 18.5% on cash over six months, or over the longer period of time you anticipate the deal taking to close, there's no reason to buy DVMT. That said, 18.5% in six months is a pretty fantastic 37% annualized return, so the market much be pretty skeptical about the timeframe, chances of the deal closing, or both. Obligatory disclaimer: I'm a Dell employee (software engineer). I don't own any shares of DVMT or VMW (aside from any fractional ownership via broad-market index funds).
- arbitragy 8y ago
  Deal wont close. DVMT is a tracker for VMW at 1.015:1. It should trade at 164.4 (given a 162 price for VMW). Offer is ~1/3rd in cash that Michael Dell isn't even paying for, it is a special dividend from VMW. Other 2/3rds is an egregious swap for private Dell shares in exchange for DVMT tracker shares. A disgusting deal all around designed to benefit Michael Dell at the expense of common shareholders. It won't be approved.
  - Blackstone4 8y ago
    Agreed that this is a great deal for Dell and its investors..... They are going to profit from the discount to the tune of ~$8bn (see my analysis in another comment). Stranger things have happened so the deal may go through. I bought more DVMT yesterday to tender it for $109.