Deals
VMware Shareholder Slams 'Terrible' Dell Technologies Talks
- Jericho Capital argues VMware would be stuck with Dell debt
- Investor says VMware better as standalone, or other mergers
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One of VMware Inc.’s largest investors called on its board to end talks with Dell Technologies about a potential reverse merger, arguing it would be a “terrible deal” for the company and shareholders.
Jericho Capital Asset Management and its affiliates, which said they collectively hold a 1.8 percent stake in VMware, making them one of the company’s top 15 investors, said in a letter Monday 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.