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Elliott Management presses EMC to spin off VMware

Joseph 'Joe' Tucci, chairman and chief executive officer of EMC Corp., speaks during the Oracle OpenWorld 2013 conference in San Francisco, California.
David Paul Morris | Bloomberg | Getty Images
Joseph 'Joe' Tucci, chairman and chief executive officer of EMC Corp., speaks during the Oracle OpenWorld 2013 conference in San Francisco, California.

Paul Singer's Elliott Management is turning up the pressure on EMC's board of directors to spin off its VMware unit, saying the benefits would be "enormous."

The hedge fund also suggested that EMC look to explore various mergers and acquisitions to discover new value.

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"EMC owns great assets, but shareholders and management are not realizing the value they should from the highly attractive businesses within EMC's holding company structure," Elliott said in a letter to the EMC board on Wednesday. "The potential for a separation has often been discussed, and the benefits from a value standpoint are enormous."