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EMC 'held merger talks' with HP

Year-long talks, now ended, could have lead to a merger of equals and the creation of an enterprise tech giant.

Storage-to-virtualisation giant EMC has reportedly held "off-and-on" merger discussions with HP, although these talks have now ended.

The deal explored would have been billed "as a merger of equals", according to the Wall Street Journal, which first reported the talks. Any deal between EMC and HP would create an enterprise computing giant with a market value of $130bn and a huge product line ranging from PCs and servers through to IT services, storage and virtualisation. EMC's most prized asset is its stake in virtualisation giant VMware which accounts for a significant chunk of its market cap .

According to the report in the WSJ the year-long talks with HP broke down over the financial terms and fears that shareholders of both companies would reject the deal. It is unclear whether they could be re-started; according to the report, EMC has also held talks with Dell about its potential purchase of EMC core assets.

An EMC spokesperson told ZDNet the company "does not comment of rumour or speculation." HP also refused to comment.

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