According to a report by Bloomberg, VMware (VMW) shareholder Jericho Capital sent a letter to the company calling the potential reverse merger with Dell a “terrible deal.”
In a letter, Jericho Capital and its affiliates which jointly hold a 1.8% stake in VMware, said that a reverse merger would derail the company’s current prospects. The resulting public company wouldn’t appeal to its growth-oriented investor base and would likely trade at a steep discount to what it would as a standalone firm, according to the letter.
Jericho Managing Member Josh Resnick said in the letter that such a deal would benefit only Dell’s interests by servicing its debt with VMware’s cash flow instead of funding buybacks or other acquisitions.
“Even the most casual observer can see that VMW gains nothing by saddling the company’s faster growth, net cash, highly strategic software business with the dead weight of Dell’s slower growth, heavily debt-laden, legacy hardware-dependent entity,” Resnick said, referring to the company.
Full Content: Bloomberg
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – China Edition – Year of the Dragon
Apr 16, 2024 by
CPI
Review Logic and Rules for Concentrations of Undertakings that Do Not Meet the Standard of Notification
Apr 16, 2024 by
CPI
China’s Review of Semiconductor Transactions
Apr 16, 2024 by
CPI
Key Challenges and Tips for Merger Control Filing in China for Listed Companies
Apr 16, 2024 by
CPI
Key Point Review: China SPC Antitrust Judgments in 2023
Apr 16, 2024 by
CPI