Dell Technologies is considering strategic options including a public stock offering, according to people familiar with the matter, as the corporate-technology company seeks ways to boost revenue and raise funds.
The board is meeting later this month and will discuss its options, said the people, who asked not to be identified because the talks are private. Round Rock, Texas-based Dell may also decide not to make any such moves at this time, the people said.
Founder and chief executive officer Michael Dell took his company private in 2013, when he teamed up with Silver Lake Management on a leveraged buyout. That freed Dell to cut costs and work to become a bigger supplier of hardware and software for corporate data centers without the quarterly investor scrutiny that comes with being a public company. Three years later, Dell acquired storage-technology provider EMC Corporation and its majority stake in data-center software vendor VMware, taking on a massive debt load to seal the $67 billion deal.
Raising cash could help the company further expand or pay off some of the debt. Dell Technologies has about $46bn of debt, according to data compiled by Bloomberg. That includes about $3bn of bonds maturing in 2018 and $4.35bn due next year while the company also has loans outstanding, the data shows.
_____________
Read more:
[ After technology sector’s biggest deal ever, Dell offloads unit for $1.6bn ]
_____________
Another option is to buy the rest of VMware that Dell does not already own, said one person familiar with the discussions. VMware shares have risen more than 60 per cent in the past year.
Dell is also considering a public share sale for its Pivotal Software cloud-computing venture. Dell met with bankers last year to discuss that possibility and was told the company could fetch a valuation of $5bn to $7bn, said one of the people. Still, any Pivotal offering may wait until the company has converted more of its business into wider-margin software and subscriptions and away from less-profitable services businesses, the person said.
Pivotal, a cloud software and services firm, was once a joint venture of VMware, EMC and General Electric and became part of Dell after the EMC acquisition.
Dell and VMware couldn’t immediately be reached for comment.
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
'Doctor Strange in the Multiverse Of Madness'
Director: Sam Raimi
Cast: Benedict Cumberbatch, Elizabeth Olsen, Chiwetel Ejiofor, Benedict Wong, Xochitl Gomez, Michael Stuhlbarg and Rachel McAdams
Rating: 3/5
World Food Day
Celebrated on October 16, to coincide with the founding date of the United Nations Food and Agriculture Organisation, World Food Day aims to tackle issues such as hunger, food security, food waste and the environmental impact of food production.
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
Votes
Total votes: 1.8 million
Ashraf Ghani: 923,592 votes
Abdullah Abdullah: 720,841 votes
GOODBYE JULIA
Director: Mohamed Kordofani
Starring: Siran Riak, Eiman Yousif, Nazar Goma
Rating: 5/5
Safety 'top priority' for rival hyperloop company
The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.
He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.
“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.
“Only once the system has been certified and approved will it move people,” he said.
HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.
With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.
