Data storage products maker EMC Corp has decided to explore selling its stake in its software unit, VMware Inc, giving into pressure from Paul Singer-run activist hedge fund Elliott Management Corp, the New York Post reported, citing sources familiar with the matter.Shares of EMC, which has a market value of $59.86 billion, rose 1.4 percent to $29.92 in premarket trading.Shares of VMware, which has a market value of $41.88 billion, were up 0.38 percent at $97.68 before the bell."We believe Elliot has put a lot more heat in the kitchen for EMC's management/board, which speaks to growing frustration about this ownership structure with VMware," FBR Capital Markets analyst Daniel Ives told Reuters.
VMware, Inc., is the provider of virtualization infrastructure solutions utilized by organizations to help transform the way they build, deliver and consume information technology (IT) resources. Shares of VMW fell by 0.25% or $-0.24/share to $97.14. In the past year, the shares have traded as low as $76.51 and as high as $112.89. On average, 1502150 shares of VMW exchange hands on a given day and today's volume is recorded at 312679.
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