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Breakingviews: EMC's wooing mood

Monday, September 22, 2014 - 03:08

Robert Cyran and Reynolds Holding discuss why the data storage giant is ripe for a match or a breakup after talks with HP fell through.

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-- -- EMC the data storage giant has been talk of Wall Street this morning team rumored deal with HP that fell through a lot of pressure. From activist investor. Elliott management. Rob Sarah now this is a company that is the subject perform scenes. Bright for the Plotkin yeah it did two things going on here first off the head of the company -- -- he's he's he's supposed to retire next year he's kind of held a perturbed before reasoning you've been with -- war and yet he can. -- -- And the other thing is the company trades a lot. For a lot less than it should be worth if you look at that some of the parts the company should be worth probably a 20% more in its current market cap just comparatively so obvious. Things like the storage business for instance. It's better than that up they treat that it sharp discount club has raped sexually free that very thing that got the arms storage business tool storage business which a lot of companies would probably like -- oracle Cisco it's that are. It's got some. With the color of virtualization. Some for business which it they take they basically can cram a bunch of servers onto one server using software instead of hardware. And it got an upcoming cloud business. And if you look at all three of them they kind of don't really belong under one -- companies trying to just I think were federation you know we're not error -- kind of and but what does that mean won't that no one's really clear all means is that okay that's just -- five conglomerate discount on. So LA comes along and it looks like they're trying to pressure them to doing something and the question is what will the company did because they face pressure from investors to do something. At the same time you know -- wouldn't usually when companies when it it. -- domineering chairman. CEO kind of leaves you had to -- the will to hold the company together kind of falls apart and it's easier me -- separate but but in this situation it really does. Nixon's. Yet that it is it to do something for instance. You know whether whether it's split it up or whether it's to sell the business I don't know you know HP for instance is interesting because it that's just what let's talk about it via HP has a history. And it's bad bad bad bad hysteria that -- I was in the senate now. What was what we think was going on here and again it's just talk -- -- -- apparently well. There was talks and Meg Whitman came into HP a couple of years ago contagion was in real trouble they they've done -- -- the history of really poor deals autonomy deal for instance thing they will write off something -- twelve billion dollars for that exact number. They did Paul and they did -- they overpaid for a couple whether acquisitions so they just you know just. Threw away like twenty billion dollars roughly. Now the question is the case it was to make women's that a group of pretty good job of just you know kind of staunch the bleeding -- and getting company to run better. And but the question is do they still make most their money from selling printers and in ink and stuff that's not a growth business is dying business over the company has some -- -- -- and Harrison asked that idioms he Woolsey what does happen. In the meantime stay tuned for more breaking views tomorrow.

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Breakingviews: EMC's wooing mood

Monday, September 22, 2014 - 03:08