Dell May Buy Back $3 Bln In VMware Tracking Stock

(RTTNews) - Dell Inc., which has offered to buy EMC Corp. (EMC) in a $67 billion cash and stock deal, said in a regulatory filing on Monday that it could repurchase at least $3 billion in VMWare Inc. tracking stock, the special class of shares Dell plans to issue to help finance its acquisition. (EMC.N).

In the filing, Dell said that following the completion of the merger it plans to consider opportunities to buy back shares from time to time, subject to its ability to generate cash flow.

The company's debt facilities are expected initially to permit up to $3 billion of such repurchases and other types of restricted payments, it added in the filing.

Dell said its plan is to reduce its debt in the first 18-24 months after completion of the merger and achieve an investment-grade rating for such debt.