A logo of Dell Technologies is seen at the Mobile World Congress in Barcelona, Spain February 28, 2018.
After five years hidden from the scrutiny of Wall Street oversight, Dell is ready to re-emerge from its confines as a privately held company.
Icahn in recent months has bought much of the tracking stock and is considering pushing Dell for more money to make for less of a discount between the tracking stock and VMware, which will remain publicly traded, sources said.
DVMT shareholders will get $109 cash or 1.3665 shares of Dell Class C common stock on the NYSE.
The tracking stock has almost doubled in value since it was issued, closing Friday at $84.58. EMC owned a controlling stake in VMware and the rest of VMware is publicly traded, as is the DVMT tracking stock. Dell's share of that dividend would be up to $9 billion.
In a separate announcement Monday, VMware said it was giving an $11 billion special dividend to shareholders tied to the completion of the Dell Technologies deal. The deal was largely in cash, but the remainder was paid via the new security that was linked to a portion of EMC's interest in the VMware business, which provides cloud-infrastructure services.
The investment firm Silver Lake took Dell Technologies Inc. private in 2013.
DVMT has nearly doubled since the stock was issued, closing at $84.58 on Friday, and they were up 8 percent at 9:38 a.m.in New York Monday.
The boards of Dell and VMware have agreed to the transaction and Michael Dell will retain majority ownership of the re-capitalised Dell.
"Unprecedented data growth is fuelling the digital era of IT, and we are uniquely positioned with our portfolio of technologies and services". Dell had been exploring a reverse merger earlier this year.
Michael Dell, who will continue on as CEO and chairman after the deal, said he remains committed to the company's long-term strategy and the independence of VMware. "The change in the tax law was not any material change to the financial condition of the company", Mr. Dell said. On Monday, it announced plans to buy the shares that track its stake in the fast-growing software company VMware Inc.