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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. 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 -1.60% and EMC and is now majority owned by Dell Technologies Inc. /zigman2/quotes/203822527/composite DELL -0.77% , 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/209864107/composite
US : U.S.: NYSE
$ 150.63
-2.45 -1.60%
Volume: 1.07M
Jan. 24, 2020 6:30p
P/E Ratio
9.57
Dividend Yield
N/A
Market Cap
$61.74 billion
Rev. per Employee
$413,548
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/zigman2/quotes/203822527/composite
US : U.S.: NYSE
$ 49.98
-0.39 -0.77%
Volume: 2.00M
Jan. 24, 2020 6:30p
P/E Ratio
9.83
Dividend Yield
N/A
Market Cap
$36.47 billion
Rev. per Employee
$624,972
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