This is one rumor that just keeps coming back: Reuters is reporting that EMC shares rose as much as 6.3 percent yesterday on market speculation that the world’s largest maker of corporate storage equipment could be acquired. The company stills holds a majority stake in virtualization juggernaut VMware.
Shares of EMC rose as high as $14.92 in trade on the New York Stock Exchange, before retreating to $14.75 in afternoon trading.
EMC spokesman Dave Farmer declined to comment, saying the company never responds to market rumors or speculation. Pacific Growth Equities analyst Kaushik Roy said the most likely company to be interested in buying EMC would be Cisco Systems. Last May, we reported on rumors of a possible merger.
A popular phrase says there is fire where there is smoke, but we’re getting a bit skeptical. These rumors have been floating for years now, and although a Cisco-EMC combo would seem like a pretty logical combination, you can ask yourself if it why a deal would be in the works now, when a merger or full acquisition should have already happened if both companies and their shareholders agreed.