EMC Will Not Spin-Off VMware

EMC Corporation

will not spin off its majority stake in VMware, Inc.

, according to a Reuters report. http://www.reuters.com/article/2015/02/27/us-emc-vmware-idUSKBN0LV2HT20150227?type=companyNews The decision was made despite pressure from activist investor Elliott Management Corp which holds a 2.2 percent stake in EMC. According to Reuters, "Elliott agreed to refrain from agitating against EMC for eight months in exchange for adding two new independent directors on the company's board," however the agreement did not resolve the VMware issue. The significant value of EMC's $29 billion stake in VMware could cause the issue to re-surface in coming months, however. The report noted, "Pressure has been building on EMC as other technology companies recently have been spinning off operations in an attempt to become more agile and capitalize on faster-growing businesses." Some analysts thought a spin-off could unlock shareholder value "under the right circumstances," the report concluded. VMware, Inc. recently traded at $85.07, up 1.30 percent. EMC Corporation recently traded at $28.94, up 0.42 percent.