EMC: $30 A Share Offer For Data Domain Remains Superior
June 12 2009 - 3:46PM
Dow Jones News
EMC Corp. (EMC), responding to a report that it plans to raise
its offer to acquire Data Domain Inc. (DDUP), said its $30 a share
offer is superior to a competing bid from NetApp Inc. (NTAP).
"We believe our $30 all-cash tender offer is superior," an EMC
spokesman said. "We have not raised our bid and believe investors
will prefer our all cash offer and vote against the NetApp-Data
Domain merger agreement."
Earlier Friday, Reuters, citing people familiar with the matter,
reported EMC plans to increase its bid for Data Domain to as much
as $35 a share to win Data Domain or at least make the acquisition
very expensive for NetApp.
Data Domain shares reacted tepidly to the report as many have
already speculated a higher bid could surface. Shares were recently
up 8 cents, or 0.24%, to $33.37. EMC gained 1% to $13.21, while
NetApp rose 7 cents, or 0.4%, to $19.98.
EMC and NetApp are locked in a bidding war over Data Domain,
which sells a technology used to reduce the amount of duplicated
information in data centers.
Data Domain accepted a $25 a share cash and stock offer from
NetApp in May, only to have EMC counter with a $30 a share all-cash
bid. Then NetApp raised its bid to match EMC's offer, which was
accepted by Data Domain as the superior bid. The NetApp offer is
still a combination of cash and stock.
-By Jerry A. DiColo; Dow Jones Newswires; 201-938-5670;
jerry.dicolo@dowjones.com