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Aug. 14, 2019, 6:27 p.m. EDT

Pivotal stock spikes 70% higher amid VMware merger discussions

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By Jeremy C. Owens

Pivotal Software Inc. /zigman2/quotes/205113305/composite PVTL +0.20% shares soared more than 70% higher in after-hours trading Wednesday as its corporate parents looked to acquire the struggling software company for a large premium. Pivotal, which went public as a spinoff from VMware Inc. /zigman2/quotes/209864107/composite VMW +0.23% and EMC and is now majority owned by Dell Technologies Inc. /zigman2/quotes/203822527/composite DELL -0.04% , is discussing being acquired by VMware for $15 a share, according to a filing with the Securities and Exchange Commission. VMware confirmed the filing with a news release Wednesday afternoon, acknowledging "ongoing discussions between special committees at VMware and Pivotal around a potential transaction." The transaction includes discussions with Dell -- which owns nearly 65% of Pivotal and more than 80% of VMware -- about converting its class B Pivotal shares to class A shares. Pivotal shares have been in a severe tailspin since the company's last earnings report, falling 57.9% in the past three months, and closed Wednesday at $8.30. In the extended trading session Wednesday, Pivotal shares were going for more than $14.

/zigman2/quotes/205113305/composite
US : U.S.: NYSE
$ 14.97
+0.03 +0.20%
Volume: 898,331
Oct. 22, 2019 12:14p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.11 billion
Rev. per Employee
$261,118
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/zigman2/quotes/209864107/composite
US : U.S.: NYSE
$ 152.71
+0.35 +0.23%
Volume: 223,408
Oct. 22, 2019 12:13p
P/E Ratio
10.14
Dividend Yield
N/A
Market Cap
$62.26 billion
Rev. per Employee
$413,548
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/zigman2/quotes/203822527/composite
US : U.S.: NYSE
$ 49.97
-0.02 -0.04%
Volume: 375,124
Oct. 22, 2019 12:13p
P/E Ratio
15.24
Dividend Yield
N/A
Market Cap
$36.23 billion
Rev. per Employee
$624,972
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