Feeds

Could Joe Tucci's parting shot at EMC be to SELL OFF VMware?

Eagle-eyed analyst spies telling phrase in mundane docs

High performance access to file storage

A sharp-eyed industry analyst has spotted that cloudy virtualisation biz VMware's SEC filings mention the words “spin-off”. What's going on here?

Aaron Rakers, the MD of analyst house Stifel Nicolaus, picked up the following sentence in VMware’s November 2013 SEC Form 10-Q filing:

…that for as long as EMC or its successor-in-interest continues to own greater than 50% of the voting control of the company’s outstanding common stock, we will not knowingly take or fail to take any action that could reasonably be expected to preclude EMC or its successor-in-interest’s ability to undertake a tax-free spin-off.

Rakers comes at this from the angle that EMC shares are under-valued, and spinning off VMware could unlock EMC’s storage business (Information Infrastructure) valuation.

EMC owns some 80 per cent of VMware shares, following the $635m acquisition in 2003. Our reading is that any spin-off is unlikely while Joe Tucci runs the EMC ship.

On the other hand, what a wondrous leaving present for EMC shareholders this could be if Tucci wants to go out with an atom bomb-sized bang. ®

High performance access to file storage

More from The Register

next story
Seagate brings out 6TB HDD, did not need NO STEENKIN' SHINGLES
Or helium filling either, according to reports
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.