Dell Inc considering its strategic options


Dell's review is at its very early stages and no deal is certain, according to the sources, who requested anonymity to discuss the deliberations. Dell now holds a stake in VMware, which is valued at about $50 billion.

Dell's founder and chief executive officer Michael Dell took the company private in 2013 through a leveraged buyout alongside Silver Lake Management LLC.

Dell has already been evaluating whether to bring VMware, which is majority owned by Dell, inside its Dell EMC unified channel partner program umbrella.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. The company did not respond to a request for comment outside of regular U.S. business hours. Moreover, Dell is also planning to sell Pivotal Software Inc which is one of the fastest growing divisions of dell.

VMware shares, which have gained over 62 percent in the past 12 months, touched an all-time high on Thursday. David Goulden, Dell's infrastructure chief left the company a year ago in December.

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Still on the subject of IPOs, Dell might also consider holding a public share sale of its own cloud-computing venture, Pivotal Software Inc., simply because a discussion between the company and its bankers suggested that Pivotal could fetch between US$5 billion (~RM19 billion) and US$7 billion (~RM27 billion).

That includes about US$3 billion of bonds maturing this year and US$4.35 billion due next year while the company also has loans outstanding, the data showed.

According to a recent report, American multinational computer manufacturer Dell Technologies Incorporation is eyeing on a possible IPO or acquisitions that will help it grow further.

Another consideration for Dell in its deliberations is offering a path to private equity firm Silver Lake to cash out on its investment in the company. Dell met with bankers past year to discuss that possibility and was told the company could fetch a valuation of between US$5 billion and US$7 billion, one of the people said.