EMC Corp. named two new representatives to its board, part of a
standstill agreement with hedge-fund manager Elliott Management
Corp., which had pushed for a shake-up at the data-storage
company.
Elliott had urged EMC to spin off its VMware Inc. unit as well
as pursue other merger-and-acquisition opportunities, a push that
came amid a series of activist investor campaigns to press
companies to part ways with slower growing businesses and focus on
more-promising operations.
The Wall Street Journal in September reported EMC had been
considering options, including a merger with a rival. The Journal
said these included off-and-on merger discussions with
Hewlett-Packard Co.
The new directors are Jose Almeida, currently chief executive of
Covidien PLC, and Donald Carty, a retired CEO of AMR Corp. and
American Airlines. Their appointments bring the board size to 13
directors, and they were identified as part of a search with
Elliott.
"Both Joe and Don are strong and experienced executives, and we
believe they will bring invaluable perspectives to the Board's
ongoing review of EMC's strategic direction," said Jesse Cohen,
portfolio manager at Elliott.
In connection with their appointment, Elliott has agreed to
certain standstill and voting provisions through September,
including voting in favor of the company's proposed slate of
directors at this year's annual meeting.
Write to Lauren Pollock at lauren.pollock@wsj.com
Access Investor Kit for Covidien Plc
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=IE00B68SQD29
Access Investor Kit for EMC Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US2686481027
Access Investor Kit for VMware, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US9285634021
Subscribe to WSJ: http://online.wsj.com?mod=djnwires