Why Pivotal Software Is Skyrocketing Today
Shares of Pivotal Software (NYSE: PVTL) rose 66% as of 11:23 a.m. EDT on Thursday. The enormous one-day jump is a response to the news that VMware (NYSE: VMW) is in talks to acquire the software development platform.
Dell Technologies (NYSE: DELL), which is a majority owner of VMware, filed a document with the Securities and Exchange Commission today stating that VMware is in talks to acquire Pivotal for $15 per share in cash. That represents a substantial premium to yesterday's closing price of $8.30.
VMware has also requested that Dell Technologies exchange all of its outstanding shares of Class B common stock of Pivotal for shares of Class A common stock of VMware as part of the transaction. Dell Technologies and a VMware special committee are currently in discussions to an agreed-upon exchange ratio.
Source Fool.com
