EMC weighs merger, other options
Data-storage giant EMC Corp. under pressure from a shareholder activist and faced with the expected retirement of its longtime chief executive, is considering options that could include a merger deal with a rival, according to people familiar with the matter.
Bloomberg
EMC for nearly a year held off-and-on merger discussions with Hewlett-Packard Co. , though those talks recently ended, according to people familiar with the matter. It isn't clear whether the talks could be revived.
Another company that has recently held talks with EMC is Dell Inc., people familiar with the matter said. It isn't clear where any talks between the two companies stand. Given their relative sizes, it is unlikely Dell would contemplate a full takeover of EMC, and might instead seek to purchase assets including its core storage business, one of the people said.
Other companies that analysts and others regard as potential deal partners for part or all of EMC include Cisco Systems Inc. and Oracle Corp. It is possible none of the alternatives EMC is contemplating will bear fruit.
J.P. Morgan Chase & Co. is advising EMC on its options, according to people familiar with the matter.
EMC, a pioneer in building big, complex systems for storing large amounts of data, is approaching a strategic crossroads. The company's CEO, Joe Tucci, has indicated he will step down by early next year and has yet to announce a successor.
Meanwhile, hedge fund Elliott Management Corp. has taken a big stake in the company and urged it to break up to ignite its shares.
An expanded version of this report appears on WSJ.com.
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