EMC Corp. Rumor: Held Failed Merger Talks WIth Hewlett-Packard Co.

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EMC Corp.
EMC
gained slightly in mid-day trading Monday on multiple reports the company held failed merger talks with Hewlett-Packard Co.
HPQ
. The talks ended after EMC, a data storage company, sought a price Hewlett considered too steep, according to reports that surfaced Sunday. Longbow Research's Joseph Wittine said Monday a deal is "unlikely" although he said EMC is probably "considering all its options." EMC has reportedly been under pressure for a breakup since earlier this year from activist investor Paul Singer's Elliott Management, who wants the company to sell or spin off its 80 stake in VMware Inc.
VMW
, which accounts for two-thirds of EMC's market capitalization. But EMC Chief Executive Joseph M. Tucci told Bloomberg earlier this year that a divestiture of VMware will "never" happen. Tucci plans to retire next year. Wittine, who maintains a Buy and $34 target on EMC, called the VMware divestiture "a long shot" and investors seeking a short-term gain from such an action "appear to be on increasingly shaky ground." Separately, CNBC reported earlier Monday that as part of the aborted deal, Hewlett-Packard had considered the sale of its printing unit. The segment contributed $5.5 billion to Hewlett's revenue of $28.5 billion in the most recent quarter. Hewlett opened sharply higher Monday but traded recently down 0.5 percent. EMC was up 1. percent recently to $29.82 a share. VMware gained 0.7 percent, trading at $94.81 a share.
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