EMC Corporation is currently considering a merger option with rivals, claims a new report.
According to a report from the Wall Street Journal, the company is exploring merger and sale options under pressure from activist shareholder Elliott Management Corp., which is seeking the firm to break up to ignite stock value.
EMC Corp has already held merger talks with rivals Hewlett-Packard Co and Dell Inc. The data storage company conducted merger discussions with HP, though those talks recently which reportedly ended up over financial terms and over fear that shareholders of both the companies would reject the deal.
The firm is also said to having talks with Dell Inc. However, it’s not known about where talks between the two companies currently stand. Considering the size of the two companies, it is unlikely that Dell would contemplate a full takeover of EMC and instead may seek buying a portion of the company such as its core storage business, people familiar with the matter reported.
Cisco Systems and Oracle are also among the other companies that analysts and financial experts regard as potential deal partners for part or all of EMC.
JP Morgan Chase is advising EMC on its plausible options, the report said.
Meanwhile, hedge fund Elliott Management Corp, which picked up a stake in EMC, is pressurizing CEO Joe Tucci, who is expected to retire early next year, to divest its stake in software maker VMware Inc, claiming that the move would boost the value of assets.
EMC, Elliott Management and HP have declined to comment on the report, while Dell could not be reached for comment outside regular business hours.
Shares of EMC closed down 0.6 percent on Friday at $29.53.