Dell in talks to buy data storage company EMC: source

Thu Oct 8, 2015 11:25am EDT
 
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By Mike Stone

(Reuters) - Dell Inc [DI.UL], the world's third largest personal computer maker, is in talks to buy data storage company EMC Corp EMC.N, a person familiar with the matter said, in what could be one of the biggest technology deals ever.

A deal could be an option for EMC, under pressure from activist investor Elliott Management Corp to spin off majority-owned VMware Inc VMW.N.

The terms being discussed were not known, but if the deal goes through it would top Avago Technologies' (AVGO.O: Quote) $37 billion offer for Broadcom BRCM.O. EMC has a market value of about $50 billion.

Dell is also in talks with banks to finance an all-cash offer for EMC, the person told Reuters on condition of anonymity as the talks were confidential.

Dell spokesman David Flink and EMC spokesman Dave Farmer declined to comment.

A deal could further strengthen Dell's presence among corporate clients at a time when founder Michael Dell has been trying to transform the company he founded in 1984 into a complete provider of enterprise computing services such as Hewlett-Packard Co (HPQ.N: Quote) and IBM (IBM.N: Quote).

The talks come two years after Michael Dell and private-equity firm Silver Lake took Dell private for $24.9 billion, ending its decades-long run as one of the world's largest publicly traded PC makers.

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Dell logos are seen at its headquarters in Cyberjaya, outside Kuala Lumpur September 4, 2013. REUTERS/Bazuki Muhammad