EMC looking at sale of VMware stake after activist pressure

September 11, 2014, 12:10 PM UTC
Key Speakers At The Oracle OpenWorld 2013 Conference
Joseph 'Joe' Tucci, chairman and chief executive officer of EMC Corp.
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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.