EMC Jumps On Report Of Buyout By Vmware

(RTTNews) - Shares of EMC Corp. (EMC) rose more than 3 percent on Wednesday after technology news website Re/code said the storage company was considering a transaction that would involve a buyout by its subsidiary VMware Inc. (VMW), a software company in which it is a majority owner

Citing unidentified sources, the report said the company was considering this as part of a strategic review of its operations, in partial response to pressure from an activist shareholder.

EMC has 80 percent ownership in of Vmware, whose shares jumped on Tuesday in response to speculation that EMC may buy out the company. But the stock lost more than 5 percent on Wednesday to settle at $86.22.

EMC closed up 3.2 percent on Wednesday at $26.85.