VMware CEO Says Idea of Buying EMC Isn’t ‘Serious Consideration’
2015-08-31 20:39:03.607 GMT
By Dina Bass
(Bloomberg) -- VMware Inc. Chief Executive Officer Pat
Gelsinger said the idea of VMware acquiring parent company EMC
Corp. wouldn’t be a “serious consideration.”
In a speech on Monday at the company’s annual VMworld
conference in San Francisco, Gelsinger also said he hasn’t ever
recommended the idea, called a downstream merger. Technology
news website Re/Code earlier this month reported that the two
companies were considering the idea and that Gelsinger had
suggested it.
EMC is looking at strategic options for boosting its share
price under pressure from activist investor Elliott Management
Corp. A standstill agreement between EMC and Elliott ends in
September, and EMC CEO Joe Tucci is overdue to retire, having
initially said he would do so by February. Elliott has called
for a spinoff of VMware, while EMC and Tucci have opposed that
idea.
Gelsinger today voiced support for EMC’s current
“federation” structure, in which EMC owns the majority of
several interlocking companies such as VMware and Pivotal, which
sells cloud software.
VMware shares rose 2.1 percent to $79.15 at the close in
New York, while EMC fell less than 1 percent to $24.87.
For Related News and Information:
EMC Falls Short of Analysts’ Estimates on Weak Storage Demand
EMC Jumps After Report of Deal Involving Buyout by VMware
Top technology stories: TTOP <GO>
Top Stories: TOP <GO>
To contact the reporter on this story:
Dina Bass in Seattle at +1-206-262-4143 or
dbass2@bloomberg.net
To contact the editors responsible for this story:
Jillian Ward at +1-415-617-7261 or
jward56@bloomberg.net
Andrew Pollack
2015-08-31 20:39:03.607 GMT
By Dina Bass
(Bloomberg) -- VMware Inc. Chief Executive Officer Pat
Gelsinger said the idea of VMware acquiring parent company EMC
Corp. wouldn’t be a “serious consideration.”
In a speech on Monday at the company’s annual VMworld
conference in San Francisco, Gelsinger also said he hasn’t ever
recommended the idea, called a downstream merger. Technology
news website Re/Code earlier this month reported that the two
companies were considering the idea and that Gelsinger had
suggested it.
EMC is looking at strategic options for boosting its share
price under pressure from activist investor Elliott Management
Corp. A standstill agreement between EMC and Elliott ends in
September, and EMC CEO Joe Tucci is overdue to retire, having
initially said he would do so by February. Elliott has called
for a spinoff of VMware, while EMC and Tucci have opposed that
idea.
Gelsinger today voiced support for EMC’s current
“federation” structure, in which EMC owns the majority of
several interlocking companies such as VMware and Pivotal, which
sells cloud software.
VMware shares rose 2.1 percent to $79.15 at the close in
New York, while EMC fell less than 1 percent to $24.87.
For Related News and Information:
EMC Falls Short of Analysts’ Estimates on Weak Storage Demand
EMC Jumps After Report of Deal Involving Buyout by VMware
Top technology stories: TTOP <GO>
Top Stories: TOP <GO>
To contact the reporter on this story:
Dina Bass in Seattle at +1-206-262-4143 or
dbass2@bloomberg.net
To contact the editors responsible for this story:
Jillian Ward at +1-415-617-7261 or
jward56@bloomberg.net
Andrew Pollack