A few weeks ago Isilon contracted Frank Quattrone’s Qatalyst Partners to advise the acquisition of a data storage device producer and it turned up that EMC was the most interesting solution. For the moment, the latter one seems to step back, reports WSJ.

Although the acquisition would have been favorable for both sides, the negotiations got struck on price matters. Isilon is encouraged by the current 20% raise of the shares values, after the acquisition rumors had been spread by the Bloomberg News, while EMC is fixed on the previous unaffected price stock.

Isilon has a market capitalization exceeding $1.8 billion. The interest from EMC is still on, but the price issue between the two prospective partners hardens the finalization of the transaction. In recent times Isilon also hired Qatalyst after 3PAR sold it for $2.35 billion – ending up a the competition between HP and Dell, who were also interested in the deal.

TPG Capital and General Atlantic consider that the asset of the company is worth less than the numbers made public by familiar with the subject sources, WSJ goes on to note.

EMC is still headstrong in its determination to make the most of its niche, which is running ripe with opportunity and bloodshed right now.  The company is steep in coalitions and partnerships, and has made a number of acquisitions and deals in the past year or so.  This situation with Isilon is certainly a setback for EMC’s longer goals.