CNBC's David Faber: Hewlett-Packard Company, EMC Corporation Deal 'Unlikely, But Still Possible'

CNBC's David Faber, citing sources familiar with the story, said that Hewlett-Packard Company HPQ and EMC Corporation EMC are still working on due diligence over a potential deal.

The news anchor also said that sources familiar with the deal are saying that a combination of the two companies are “unlikely, but still possible.”

Faber's comments come hours after activist investor Elliott Management released a letter to EMC's board of directors urging the company to explore strategic options.

Related Link: Elliott Management Further Details Its Position On EMC Corporation, VMware, Inc. In New Letter

On September 21, The Wall Street Journal reported that EMC was engaged in talks with rivals, including Hewlett-Packard, over a merger deal. The two companies held talks for around a year, but financial terms and shareholder concern prevented a deal from finalizing.

EMC has previously hired bankers at JP Morgan to explore its strategic options.