WSJ: Elliott Management pushes EMC to spin off VMware unit

|By:, SA News Editor

EMC +4.9% premarket following a WSJ report that activist investor Elliott Management has taken a $1B-plus stake in the company and plans to push for a spinoff its VMware (NYSE:VMW) unit.

Elliott's investment would amount to ~2% of EMC’s $55B equity value, and would make the hedge fund its fifth-largest shareholder and would be one of the largest positions Elliott has ever taken.

Elliott will seek to convince EMC that the company’s lagging stock would receive a substantial boost if it were to spin off VMware, the report says.