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Wednesday, October 8, 2014

CORRECTED-Activist investor Elliott urges EMC to spin off VMWare, (NYSE: VMW)

Activist investor Elliott Management Corp has urged data storage products maker EMC Corp to spin off its VMware Inc virtualization software unit.EMC's federation structure obscures enormous value, Elliott Management said in a letter to the company's board.Elliott said it owned a 2.2 percent stake in EMC.EMC's "federation strategy" comprises four main businesses - its core data-storage unit, virtualization software unit VMware, enterprise security business RSA and cloud-computing software maker Pivotal.

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 0.26% or $-0.24/share to $91.18. In the past year, the shares have traded as low as $76.51 and as high as $112.89. On average, 1632960 shares of VMW exchange hands on a given day and today's volume is recorded at 405555.