The Dell logo is seen in this file photoBAZUKI MUHAMMAD/Reuters
Dell Inc. is in talks to combine with all or part of EMC Corp., which is looking at ways to appease shareholders disappointed with returns and its efforts to replace an outgoing chief executive officer, people familiar with the discussions said.
The talks would involve a merger between the computer maker and all or part of EMC, said the people, who asked not to be identified because the discussions are private. The talks may not result in a deal, they said.
The news of a potential combination between the companies was reported earlier by the Wall Street Journal.
EMC has been looking at strategic options for boosting its share price under pressure from activist investor Elliott Management Corp. EMC needs to both pacify Elliott and find a successor for CEO Joe Tucci, who was supposed to step down back in February. The company, which has acknowledged it needs to take steps to boost shareholder value, last year held talks about a merger with Hewlett-Packard Co., people familiar with the matter said at the time.
A standstill agreement between EMC and Elliott, which added two members to EMC's board, ended in September. EMC's shares have declined 13 per cent this year, leaving it with a market value of about $50-billion. Dell was taken private in a $25-billion deal in 2013.
Dave Farmer, a spokesman for Hopkinton, Massachusetts-based EMC, and Frank Smith, a spokesman for Dell, declined to comment.