“The other factor that must be figured in is the amount of outstanding shares of each equity
Emc has 2.02 BILLION shares and Vmw has 431 MILLION SHARES so right away you have a problem of dividing that 431 Million into 2.02 Billion The math doesn't work out since they must be distributed equally between all shareholders. Even if they sold off all the Vmw shares you would have to be a holder of several shares to share in the returns. I would think that on the open market they could probably get a 20% premium but even that would be a small amount. since they own 82% of the company the other 18% would also be split towards the other holders. The other holders have no say in the disposition of the company.
But the 18% that is held by the other stockholders presents a problem for any distribution.
But they have not asked me for my opinion, and I know that Emc can use Vmw as a leverage to complete a sale..”
That paragraph was feed into IBM’s Watson and ask what it means. Watson just sat there for a minute and then smoke started to pour from its processing unit. Then in its dying breath, printed out the word “Notsosimple11”