Boston, MA 09/23/2014 (wallstreetpr) – According to the news brought out by Bloomberg, the manufacturer of storage computers, EMC Corporation (NYSE:EMC) is facing activist pressure as well as the retirement of Joseph Tucci, the CEO. As a result, the company is trying to make use of the strategic alternatives, which could include a spinoff, partial or complete sale of VMware, Inc.(NYSE:VMW), according to the sources well conversant with the matter.
Discussion with top grade companies:
The Massachusetts-based company has made contact with well known firms like Oracle Corporation (NYSE:ORCL), Hewlett-Packard Company (NYSE:HPQ), and Cisco Systems, Inc. (NASDAQ:CSCO) regarding the selling of the company. People intimate with the issue also stated that EMC had a chat with Dell Inc. (NASDAQ:DELL) regarding an agreement related to business crisis. However, the people informed that no deal is coming up, or no sale/ spinoff will take place as of now.
Elliott forcing EMC to sell itself:
The company started a strategic review during the spring, according to which the CEO has decided to stand down from the dignified role before February, as per the employment agreement of the CEO. In the recent past, the company faced tremendous pressure from activist investors Elliott Management Corp, which possesses total stake of above $1 billion in the company. According to the news, Elliott is forcing the company to sell itself or spinoff VMware.
Spokesman refused to comment:
A spokesman from EMC Corporation (NYSE:EMC), Dave Farmer refused to say anything on the situation. Similarly, the spokespersons from Oracle, Dell, HP and Cisco declined to comment anything.
Previous deal:
EMC Corporation (NYSE:EMC) had a discussion with HP and Dell previously, which was reported in the Wall Street Journal. The acquisition decision between EMC and HP advanced a lot, where it was decided that the Chief of Hewlett-Packard Company (NYSE:HPQ), Meg Whitman will serve the CEO of EMC and Tucci as the Chairman. However, due to some financial disagreement the deal was cancelled, stated a source.
