Hedge Funds Get Pivotal-VMWare Price Bump After Judge Fixes Math

Hedge funds that challenged the price of Pivotal Software Inc.'s $2.7 billion sale to VMWare Inc. scored an unusual legal victory when a Delaware judge revised her math and reversed herself.

Chancellor Kathaleen St. J. McCormick, who ruled for VMWare last year, issued a corrected decision Tuesday giving an additional $0.44 a share over the deal price to two affiliates of HBK Capital Management Group LP that owned about 10 million shares at the time of the take-private deal.

Tech billionaire Michael Dell controlled both companies before the transaction. Dell, VMWare, and Dell Technologies Inc.—its partial parent at the ...