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Thursday, September 11, 2014

EMC plans to keep stake in VMware, despite investor pressure-source, (NYSE: VMW)

EMC Corp plans to keep its majority stake in software maker VMware Inc despite pressure from activist hedge fund Elliott Management, a person familiar with EMC's thinking told Reuters on Thursday.The person, who was not authorized to publicly discuss the matter, described as inaccurate a Thursday report in the New York Post that EMC had decided to explore selling its stake in business software maker VMware. The source did not provide further details.In July, Elliott Management notified EMC it had acquired a stake in the company and urged Chief Executive Officer Joseph Tucci to spin off VMware, saying the move would boost the value of the two assets.Tucci has balked, saying VMware is one of his company's "most strategic assets."

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 0.7% or $-0.68/share to $96.70. 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 1702799.