A recent article by Bloomberg indicates that EMC may be considering selling their stake in Virtualization solutions provider VMware.

Sources at virtualization.info state that Intel may be interested in an acquisition, however its not likely to happen before Jan 09 in order to complete a tax free distribution of the shares.

The move would allow VMware to place the hypervisor directly onto the CPU leading to all kinds of new possibilities within the market.

Intel and Vmware have teamed up in the past on various collaborations and Intel already own a small 2.5 percent stake in the Palo Alto based company, but something of this magnitude is sure to be of interest to everyone.

Some analysts are expecting something big to be announced when EMC holds its annual meeting on May 21.