EMC facing $10bn test to prevent calls for a breakup

EMC needs to convince investors that keeping the company together is worth more than the estimated $10bn (€7.4bn) that could be unlocked in a breakup.

Activist investor Elliott Management has built a stake in EMC and is pushing the $58bn firm to spin off its publicly traded VMware software unit.

While the average of five analysts’ estimates signals a breakup could unlock over $10bn in shareholder value, Royal Bank of Canada said management has a point in arguing that a split would weaken the parts and harm growth.