VMware’s stock has plummeted by about 25% in over a month following the announcement of the Dell-EMC deal. There have been a few points of concern for VMware’s shareholders since the deal was announced. EMC initially had an 80% stake in VMware, with 97% of voting rights. With Dell acquiring EMC, it has effectively taken the 97% voting rights but floated over 50% of VMware?s stock as “tracking stock” with no voting rights. Under the conditions of the deal, Dell would have a 28% stake in VMware with 97% voting rights, while existing VMware shareholders retain the 20% ownership with 3% voting rights, and over 50% ownership lies with former EMC shareholders in the form of tracking stock and no voting rights.

from Forbes – Tech http://ift.tt/1jjXjqx
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