By Kimberly Chin
Shares of Dell Technologies Inc. rose nearly 7% after hours Wednesday to $56.50 after the company said it is considering a potential spinoff of its 81% equity ownership interest in VMWare Inc.
Dell said it is looking at various options, including maintaining its current ownership structure in VMWare as is.
A potential spinoff wouldn't occur before September 2021, the company said.
The Wall Street Journal reported in June that Dell was examining options including a spinoff in its stake in the cloud-software giant.
VMWare's shares rose 3% in after-hours trading to $143.85 following the news.
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