Private US computer making giant Dell is poised to mull various strategic options later this month, including taking the firm public via an initial public offering (IPO).
Founder Michael Dell took the PC maker private four years ago, before a huge deal to acquire data storage provider EMC Corp for US$67bn in 2016.
Dell looking at more acquisitions?
But that deal has failed to deliver cost savings and performance that had been projected for the group as a whole against a backdrop of a stagnant PC market.
Dell is now reportedly reviewing a list of several possible acquisition targets that would boost its cash flow and expand its offerings as well as an initial public offering.
Sources say it may also consider a transaction with its majority-owned New York-listed VMware Inc (NYSE:VMW), a virtualization software maker, which was majority owned by EMC in 2016 and then transferred to Dell.
VMware shares have gained over 62% in the past 12 months and touched an all-time high on Thursday and it could make use of this buoyant valuation.
Interest payments at about US$2bn a year
Dell, with the help of private equity group Silver Lake took the firm private in a US$25bn deal in 2013 and holds around 18% of the capital.
A public listing now, says commentators, could mean Silver Lake could start selling down its stake.
Also, an IPO would help Dell to pay off its debt faster, saving cash on expensive interest payments, for which it currently pays about US$2bn a year.