Dell to use VMware to help pay for EMC deal

Dell to use VMware to help pay for EMC deal

Dell Inc is planning to use equity in cloud software company VMware Inc (VMW.N) to help pay for its acquisition of EMC Corp (EMC.N) in a deal valuing the data storage company at more than $55 billion, according to people familiar with the matter.

While the bulk of its offer will be in cash, Dell also plans to pay EMC shareholders with "tracking stock" that follows the value of the 20 percent of VMware that EMC does not own, the people said on Friday.

A deal could be announced as early as next week, assuming that financing arrangements and the remaining negotiations are completed, the people said.

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