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Dell intranet post said VMware slurp disclosure was mere paperwork

Staff told there’s nothing to see here, get back to work and stop worrying about our debt

By Simon Sharwood

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Dell’s revelation it may reverse-merge with its subsidiary VMware or perform other financial contortions has been dismissed as mere compliance-grade paperwork, by … Dell itself.

On top of the filing that disclosed the company is considering a change of structure, the company published another document containing a post CEO Michael Dell made on the company intranet.

The document opens by rebutting the proposition that Dell’s considering a new structure because new US tax laws will make its life hard as it tries to service its ~US$50bn debt.

“We are in excellent financial condition,” Dell the man told staff. “We have repaid approximately $10B of gross debt since the close of Dell/EMC. We are also excited about the positive impact of tax reform on the US economy and believe any impact for Dell Technologies, based on what we know today, will be more than manageable.”

That post went on to explain that last week’s revelations were not much more than a box-ticking exercise.

“We would normally keep our deliberations confidential until a particular course of action is determined, but because Dell Technologies owns ~82% of VMware, we are required to make a public filing with the U.S. Securities and Exchange Commission.”

In other words, telling the world about its ponderings was no sign they’re advanced, or serious. It was just compliance.

But the intranet post did reveal that Dell, the company and the man, want to do more pondering, and are alive to the damage that can be done by speculation about deals. “While this process continues,” the post said, “it is business as usual for team members, customers and partners with no changes to current structures, practices and processes.”

“There will be continued press coverage and speculation, and it’s important to stay focused on delivering for customers and closing the quarter strongly.”

Any chance of an exemption from that focus for reading The Register, Mike? ®

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