Joseph ‘Joe’ Tucci, chairman and chief executive officer of EMC Corp., may respond to breakup appeal from Elliott Management.
Photo by Bloomberg—Getty Images
By Laura Lorenzetti
September 11, 2014

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.

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