VMWare Inc. (VMW) – Get the report Shares fell early Wednesday after the CEO replaced the outgoing Bob Swan at Intel Corp. (INTC) – Get the report.
Pat Gelsinger will replace Swan, who, after two and a half years, is at the helm of the struggling chip maker. However, he will remain on the board of VMWare with CFO Zane Rowe serving as interim CEO. Intel called Gelsinger a “Roven technology leader with a remarkable track record of innovation, talent development, and deep knowledge of Intel”. VMWare said.
Gelsinger’s resignation could undermine Dell Technologies Inc.’s plans to spin off VMWare, which the company will become part of after a date September 21, five years after the acquisition of EMC Corp. – holds an 81% majority stake, make a tax-free transaction more difficult.
(NB: an earlier version of this story incorrectly stated that the tax break would expire on September 21st. The street regrets the mistake.)
“I speak for the VMware Board of …