NEW YORK (TheStreet) -- Shares of EMC Corp. (EMC) are up 1.53 to $29.95 in pre-market trade after it was reported that the data storage products maker will explore selling its stake in software service company VMware (VMW) , the New York Post reports.
The decision to consider putting the unit on the block means Joe Tucci, EMC's chairman and CEO, has given in to billionaire Paul Singer's pressure, sources told the Post.
Singer's Elliott Management has reported a 2% stake in EMC and has been pressuring it to exit its 80% stake in VMware, the Post said.
Hewlett-Packard (HPQ) is a possible VMware buyer, a source said.
EMC, while weighing the sale of the stake, may also look to put another asset or assets on the block, another source said.
EMC bought VMware for $600 million in 2004, which has made it a very successful investment over time, the Post added.
VMware shares are up 0.89% to $98.25 in pre-market trade.
TheStreet Ratings team rates EMC CORP/MA as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate EMC CORP/MA (EMC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."