Valuations questions.
In this article, the author lists EMC market cap at $26B so a combined HP-E and EMC would be $84B. That logic makes sense until he then says VMware and Pivotal would join the software business of HP Enterprise. That would only happen if the full $50.44B valuation of EMC were consumed. That value includes 80% ownership stake of VMware, currently valued at $29.54B (80% of 36.92B market cap of VMW), so either Mellor thinks that full EMC is overvalued by ~2x or he didn't consider the market value of VMware. I don't see a takeover of EMC by HP-E happening if it includes VMW. I think that's also Elliott's point and why they're pushing for a full spinoff. They couch it terms of ROI (and cashing out ~$30B more on the original $640M purchase of VMware). Either way, that's a ton of scratch not addressed in the article. If EMC sell the rest of VMware and pay the value out as a dividend, then VMware does not join HP-E in a merger. If EMC don't, then the $26B is short by a lot.