VMware jumps after Reuters report on Cisco interest

VMware shares rose 7 percent on Feb. 11 after Reuters reported on Cisco’s interest to buy the virtualization software maker. Reuters exclusively reported that Cisco had talked informally to VMwares majority owner EMC last year about a potential acquisition. Quoting banking sources, the story explained that VMware is compelling enough for Cisco to go after if EMC decides to sell its stake, but that it is unlikely to buy all of EMC given the current market environment. Analysts and options traders attributed the VMware share move to the Reuters story, which was also discussed in detail on a Barrons blog. EMC shares also rose 3 percent.