EMC Reorganizes as Insiders Sell Shares
EMC will take a $100 million charge against earnings this quarter to create a new international holding company that will also include the foreign operations of RSA and Data Domain.
Data storage giant EMC (NYSE: EMC) gave investors a reason for pause last week when it confirmed in an SEC filing that it will absorb a $100 million restructuring charge in the fourth quarter that will trim earnings by a nickel a share.
Also, the company divulged that a trio of EMC executives, including director John Egan, sold almost 2 million shares of stock worth close to $5.1 million in the quarter.
The $100 million charge stems from a reorganization of EMC's international operations. The company will transfer some assets of its RSA and Data Domain businesses and legacy foreign corporations owned directly by EMC into a single EMC international holding company. The international subsidiaries picked up in the acquisitions of RSA and Data Domain will be combined with EMC's existing foreign companies.
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