Dell Technologies Inc. plans to sweeten a $22 billion deal to buy out an affiliate and return to the public markets, according to people familiar with the matter — five months after the PC and data-storage giant’s initial proposal sparked intense shareholder opposition.
Under the new deal, which could be announced as soon as this week, shareholders of the affiliate, known as DVMT DVMT, +4.06% , would receive cash and stock worth more than the current $109-a-share price, the people said. Exactly how much will depend on how DVMT shares trade in a future period. Dell also will increase the $9 billion cash portion of the deal by about 50%, the people said.
Shareholders of DVMT, which is meant to track Dell’s stake in the fast-growing VMware Inc. VMW, +1.19% software unit, may also receive a seat on the newly public Dell’s board, they said.
It is still possible, as always, that the deal could fall apart at the last minute. Assuming it goes forward as expected, it would salvage Dell’s effort to streamline its complicated structure and return to the public markets without conducting a traditional initial public offering.
An expanded version of this report appears on WSJ.com.
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