July 21 Activist investor Elliott Management
Corp has taken a $1 billion stake in data storage equipment
maker EMC Corp and plans to push the company to spin off
its VMware Inc unit, the Wall Street Journal reported,
citing people familiar with the matter.
Elliott will seek to convince EMC that the company's lagging
stock would receive a substantial boost if it were to spin off
VMware Inc, in which EMC owns a majority stake, the daily said.
Representatives of Elliot Management and EMC were not
immediately available for comment outside regular U.S. business
EMC posted a better-than-expected revenue in the last
reported quarter but VMware reported weak growth in bookings.
Elliott, which will become the fifth largest shareholder in
EMC after picking up the stake, is expected to argue that the
company's present structure has hampered the performance of
EMC's stock, the Journal said.
Should EMC move to split off VMware, potential buyers of
part or all of the company could emerge, the report said.
Elliott called EMC to inform the company of the investment,
and fund officials plan to meet with EMC Chairman and Chief
Executive Joe Tucci, the report said.
(Reporting by Arnab Sen in Bangalore; Editing by Gopakumar