This morning Cisco announced that it will puchase a $150 million stake of VMware common shares. After the IPO Cisco will own approximately 1.6% of the company.
Earlier in the month Intel had announced an investment of $218 million in VMware for a 2.5% stake in the company.
This is an indication of the strong demand for the upcoming partial IPO of VMware towards the end of hte summer. EMC is planning to sell about 10% of its shares to the public.
EMC originally acquired VMware in 2004 for $625 million.
Disclosure: I am long EMC
Friday, July 27, 2007
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