Initial public offering is seen as backup plan if DVMT deal falls through
Dell Technologies Inc. is exploring the possibility of launching a traditional IPO instead of going public through a proposed acquisition that has met resistance from several investors.
The PC and storage giant plans to interview several banks for underwriting roles in an IPO this week, according to people familiar with the matter. As a result, it has postponed by about a week a roadshow to sell the takeover deal that was to begin this week, the people said.
Dell would be one of the largest U.S. companies to launch an IPO. It is far from certain that it will ultimately do so, however, and interviewing banks could be seen as a tactic to put pressure on investors to support the current deal.
Either way, the move is a sign tensions are rising between Dell and investors who argue that the takeover deal undervalues its Class V stock. Known as DVMT, that stock was created to track Dell’s controlling stake in VMware Inc. VMW, -0.06% , a fast-growing provider of cloud-infrastructure services.
