Pivotal stock spikes 70% higher amid VMware merger discussions

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Pivotal Software Inc. shares soared more than 70% higher in after-hours trading Wednesday as its corporate parents looked to acquire the struggling software...

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. VMW, -3.11% and EMC and is now majority owned by Dell Technologies Inc. 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.

 

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