EMC to hang fire on VMWare stock sales for two years (or more)
Will retain its Pac-Man shaped percentage after IPO
EMC is to retain a 90 per cent stake in VMWare for at least two years after the subsidiary's IPO in late 2007.
EMC CEO David Goulden today told the Reuters Global Technology, Media and Telecoms Summit in New York the company will assess the situation later, but is "looking at at least a couple of years time horizon."
Plans to offer 10 per cent of VMWare through the IPO were announced in February to provide a boost for EMC shareholders concerned over VMware's sales skyrocketing while EMC shares stayed flat.
An April filing with the US Securities and Exchange Commission revealed EMC plans to get $100m out of the sale.
EMC bought virtual machine software maker VMWare in 2004 for $635m cash. ®