EMC Exploring Merger Opportunities With HP And Dell

EMC, a player in the IT data storage field and headquartered in Hopkinton, Massachusetts, is trying to decide what direction to go in once its Chief Executive Officer Joe Tucci steps down early next year. Under pressure from hedge fund Elliott Management Corp., which now has a big stake in the company, EMC is once again considering a merger with rival Hewlett-Packard.

This isn't the first time EMC has entertained the idea of merging with HP. The two sides have been engaging in talks throughout the past year, though nothing has materialized. Given the pressure its under, EMC may once again chat with HP to see if the two can hammer out a deal.

Image Source: Flickr (Bob Mical)

Citing "people familiar with the matter," The Wall Street Journal reports that Dell is another candidate for a merger, and that the two have recently held talks about it. Dell might not be in a position for a full takeover, though it could offer to buy certain assets from EMC, including its storage business.

HP seems a more likely bet, though one or both sides will have to relent on financial terms, which is the reason why previous talks broke down. The deal that was being considered is one that would been an all-stock transaction, WSJ reports. However, both sides feared that their respective shareholders would reject the merger as outlined, so nothing became of it.