EMC, the data storage equipment maker that has been fighting off an activist investor seeking to break up the company, may finally give in to the demands.
The $60 billion tech company is exploring a sale of its stake in VMware, the New York Post reports.
Elliott Management, run by billionaire Paul Singer, revealed a 2% stake in EMC in July to become the seventh largest shareholder. The investment management firm has since been pressuring EMC (EMC) to spin off VMware (VMW), a publicly-traded software maker that is 80% owned by EMC.
Elliott believes the Hopkinton, Mass.-based company would get a substantial stock price boost from the sale.
VMware operates independently of EMC and focuses on back-office business software. The Palo Alto, Calif.-based company was snapped up for $600 million in 2004 and now has a market cap of nearly $42 billion.
EMC may also consider selling off another asset or assets, a source told the Post.
An EMC spokesperson was not immediately available for comment.