VMware Plunges on Report It May Acquire Dell in Reverse Merger

VMware Inc. plunged after CNBC reported that it’s considering acquiring Dell Technologies in a reverse merger, bringing Dell back to public markets in what could be the industry’s biggest deal ever.

VMware, which was absorbed by Dell in its $67 billion acquisition of EMC Corp., could now turn around and buy Dell, CNBC reported, citing unidentified people familiar with the matter. In a reverse merger, VMware would issue shares to Dell’s private owners, which could then sell the stock on the public market, giving them a way to profit from having taken Dell private in 2013 and to help pay off some of its $50 billion in debt, CNBC said.