Rumors began circulating after a Citigroup analyst report issued Wednesday pegged EMC -- as well as BMC Software (BMC), Cerner (CERN), F5 (FFIV) and Mellanox (MLNX) -- as potential targets for Oracle. EMC is a "long shot," the report said.
While a deal with Oracle is possible because of EMC's attractive storage business, EMC's 80% stake in virtualization software company
(VMW) might add complications, Avian Securities analyst Matt Bryson said. EMC has traditionally taken a "hands off" approach with VMWare, and Oracle "might have a hard time with
If Oracle decided to buy EMC, it might consider divesting VMWare, Bryson added.Bryson also deemed other rumors circulating about a combination between Microsoft (MSFT) and EMC as implausible. "Could Microsoft be interested in VMware?" he said. "That's more interesting, but not EMC as a whole." Data storage companies have already seen a string of buyouts in the last few months, including HP's (HPQ) $2.35 billion acquisition of 3Par in September, and IBM's (IBM) purchase of Neteeza for $1.7 billion. EMC and Oracle could not be reached for immediate comment. In midday trading, EMC was up 3.74% to $21.06 and Oracle was down 1.4% to $28.20. --Written by Olivia Oran in New York.
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