VMware IPO will not pay EMC shareholders dividend

The VMware Initial Public Offering is approaching and several financial analysts and journalists are introducing new informations about it.

Seeking Alpha has doubts about VMware capability to sustain competition:

The real issue is that virtualization as a separate function may have run its course. Red Hat bundled it into the recent version of its Red Hat Enterprise Linux [RHEL] and Microsoft plans to bundle it into the upcoming server operating software replacing Windows 2003. That’s what Microsoft’s acquisition of Softricity in May 2006 was all about. The Red Hat/Microsoft one-two punch at the low end of the market means today’s separate market for virtualization software may be at its peak right now (at about .3% of total software spend)…

Worcester Telegram & Gazette reports a piece of last EMC meeting about dividends for shareholders:

During a question-and-answer session with Mr. Tucci, some shareholders drew applause when proposing that revenues from the VMware IPO be used to pay a dividend to shareholders.

“I come here every year, and when I go home I buy more shares,” said Howard Shea. “But the stock doesn’t go anywhere. Would you consider a dividend from the VMware offering? You could put some cash into our pockets.”

Mr. Tucci replied that the VMware IPO would be valuable to EMC in recruiting and retaining good employees for the subsidiary.

“The board looks at what is best for the shareholders and the company,” Mr. Tucci said. “A one-time dividend is not the best thing to do for the growth of the company or earnings per share.”…