Deals
EMC Faces $10 Billion Test to Counter Call for Breakup: Real M&A
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EMC Corp. needs to convince investors that keeping the company together is worth more than the estimated $10 billion that could be unlocked in a breakup.
Activist investor Elliott Management Corp. has built a stake in EMC and is pushing the $58 billion company to spin off its publicly traded VMware Inc. software unit, according to a person familiar with the matter. While the average of five analysts’ estimates signals a breakup could unlock more than $10 billion in shareholder value, Royal Bank of Canada said management has a point in arguing that a split would weaken the parts and harm growth.