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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 eve
by 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 agoAgreed 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.