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US: EMC defies breakup calls with latest takeover

By  |  October 22, 2014

EMC has announced plans to acquire nearly all of a joint venture with Cisco Systems it does not already own, a move that so far defies calls by activist investors for an EMC break up.

Reports say EMC will purchase all but 10 percent of the joint venture, known as VCE, a seller of high-end data center equipment. The rest will be absorbed into EMC’s operations. Financial terms of the deal were not disclosed by the companies.

The joint venture was first launched in 2010 along with VMware and Intel Corp.

Reports say experts appear confounded as to why EMC would focus on VCE at a time when so many are calling for a breakup of the company. “EMC has a fire in its house right now and the company appears focused on painting its bedroom,” FBR Capital Markets analyst Daniel Ives said in response to EMC’s buyout plans for VCE.

Full content: Bloomberg

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