Company: Dell Technologies (DVMT)
Kaskela Law LLC has commenced an investigation of behalf of Dell Technologies Class V (NYSE: DVMT) stockholders.
DVMT is a publicly-traded security that tracks VMware (NYSE: VMW), a software company controlled by Dell Technologies, and was created to help fund Dell’s 2016 acquisition of EMC. On July 2, 2018, Dell Technologies proposed exchanging each share of DVMT for 1.3665 shares of Dell Technologies Class C common stock, or for $109 in cash, subject to strict exchange limitations.
According to Barron’s: “The big winners here? Michael Dell and Silver Lake Partners, the owners of Dell. They will get the bulk of a roughly $10 billion windfall based on the difference between VMware’s current price of about $158 and the announced $109-a-share deal value for the tracking stock.” Further according to Barron’s, “[t]he Dell tracking-stock holders deserve better…. Dell is paying just 69 cents on the dollar for the tracker, assuming a deal value of $109. The tracker’s current $16-a-share discount to the stated deal price reflects doubts among investors and analysts that the Dell class C common to be issued as part of the transaction will be worth what Dell is assuming.”
Kaskela Law LLC’s investigation seeks to determine (i) whether Dell’s directors breached their fiduciary duties to DVMT stockholders in connection with the proposed share exchange, (ii) whether DVMT stockholders are expected to receive adequate consideration for their DVMT shares; and (iii) whether DVMT stockholders are receiving all material information in connection with the proposed share exchange.
DVMT stockholders who wish to discuss this investigation and their legal options are encouraged to contact Kaskela Law LLC (484) 258-1585 or (888) 715-1740, or via email at email@example.com, and/or complete the information form on this page.