Reuters

(Reuters)

Report: Dell Offering EMC $27.25 Per Share & Special VMware Stock

Reuters

Dell Inc is offering $27.25 per share in cash for data storage company EMC Corp (EMC) in addition to a specialized stock in cloud software company VMware Inc (VMW), Re/code reported.

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The specialized stock, which would "track" the value of the 20 percent of VMware that EMC does not own, along with the cash offer would take the per-share offer above $30, Re/code said, citing sources briefed on the negotiations.

An offer of $30 per share would put the deal price at about $58.4 billion.

Analysts were looking for an offer of at least $30 per share.

Chief Executive Michael Dell was in New York on Friday to meet with bank executives, including J.P. Morgan CEO Jamie Dimon, Re/code reported. (http://on.recode.net/1GAOQEY)

Dell is asking banks to make a series of bridge loans that would later be converted into high-yield bonds, which in turn would be exchanged for equity in the combined company, Re/code reported.

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The banks are studying the feasibility of the plan, according to the report.

Shares of EMC were up 4 percent at $29 in extended trading.

EMC and Dell were not immediately available for comment.

(Reporting by Anya George Tharakan in Bengaluru; Editing by Don Sebastian)