- On day one of VMware's (VMW +2.1%) annual VMworld conference, CEO Pat Gelsinger has downplayed reports EMC's (EMC -0.4%) board is mulling a downstream merger through which VMware would acquire its parent company using a mixture of stock and cash/debt. Gelsinger reiterates the company line that EMC/VMware's current "federation" structure is preferable to alternatives.
- VMware sold off last Wednesday on a Re/code report stating a downstream merger is being seriously considered. Elliott Management, whose standstill agreement with EMC ends tomorrow, was said to be willing to support such a deal, though it still prefers EMC fully spin off VMware.