By 
Western Digital Corp. is close to a settlement with activist investor Elliott Management Corp. that calls for the $19 billion company to consider more seriously splitting into two, according to people familiar with the matter.
Elliott in May revealed a 6% stake in Western Digital
WDC,
+1.00%
and sent a letter calling on the company to explore a separation into businesses focused on traditional hard drives for computers and flash memory, respectively.
A truce, which might also include potential changes to Western Digital’s board, could be unveiled as soon as this week, assuming the talks don’t fall apart, the people said.
San Jose, Calif.-based Western Digital, which has a market value of around $19 billion, previously said it would consider Elliott’s ideas. At a conference in late May, Western Digital Chief Executive David Goeckeler said the company and Elliott have been discussing additional ways to improve the company’s valuation.
An expanded version of this report appears on WSJ.com.
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