EMC Corp (EMC.NO) has decided against cleavage of a majority stake in VMware Inc (VMW.N) to test the idea in recent months for the investor pressure Elliott Management Corp., three sources close to the matter said.
Elliott, who owns a 2.2 percent stake in EMC, had in the data storage company based in Boston called VMware divides his stake last year as part of a broader public campaign. Last month Elliott agreed agitation against EMC for eight months in exchange for two new independent directors to refrain in the corporate directory.
The suspension agreement no EMC 80 percent stake VMware.However direction, EMC has decided Elliott asks the decrease spin-off, people said this week, asking not to be identified because the talks are private. The sources said that the decision to EMC participation, estimated at about $ 29000000000 in the current price of VMware, could change in the coming months.
Speaker of EMC, VMware and Elliot comment.EMC refused together with their financial advisor, review options, including the division of VMware and the potential sale of its security business RSA were, the sources said earlier he said.EMC is an IPO of big data and to search for the division of Pivotal software.
EMC management is a day of investor holds on March 10 in New York, but only with the operating strategy and not to the company’s structure, Tucci said.Joe Tucci, president and CEO of EMC, has publicly stated that the unit of VMware virtualization software is the core of a single federated business model,which includes the main storage unit data and business security company RSA and software manufacturers Pivotal cloud computing. The was a major factor, divided to the decision, the assets of one of the sources.
Elliott has been critical of the structure of the organization and said in an open letter to the Board in October of that structure, several companies EMC hidden tremendous value. EMC builds pressure on his due of technology companies have recently been outsourcing operations in an attempt to be more agile and take advantage of the fastest growing companies. Hewlett-Packard Co., Symantec Corp. and eBay Inc have announced major divisions and divisions.
Before the announcement of their separation, HP had been in merger talks with EMC Corp, although these talks failed after months of fruitless negotiations over the price and structure, sources previously told Reuters. Analysts have said that EMC is currently at a discount compared to competitors like NetApp Inc and a spin-off of VMware could help unlock value in appropriate circumstances.