Bug, feature

11 December 2018 By Robert Cyran Follow @rob_cyran

Dell’s $23.9 bln plan to buy back paper that mirrored the performance of subsidiary VMware received shareholder approval. Like most tracking stocks, it consistently traded at a discount because holders had few rights. That sounds like a bug; for Dell it proved a handy feature.

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Dell Technologies said on Dec. 11 it had received shareholder approval to buy back tracking stock tied to its 81 percent stake in VMware, in a deal worth around $23.9 billion deal.

Holders will receive either $120 in cash, or shares in unlisted hardware-maker Dell, for each share of the tracker they hold. The cash is subject to a total cap of $14 billion.

After the transaction closes, Dell will be listed. The company expects its shares to begin trading on the New York Stock Exchange on Dec. 28.

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