DOW JONES NEWSWIRES
Data Domain's (DDUP) board urged shareholders to reject EMC
Corp.'s (EMC) $1.9 billion all-cash bid for Data Domain, while
affirming its support for a competing offer from rival data-storage
company NetApp Inc (NTAP).
EMC bid $30 a share for Data Domain two weeks ago, several weeks
after Data Domain agreed to NetApp's $1.5 billion cash-and-stock
bid. NetApp then boosted its bid to match EMC on a per-share
basis.
Shares of Data Domain, which sells a technology used to reduce
the amount of duplicated information in data centers, were down 26
cents at $33.24 in recent trading, amid a broad market
downturn.
Data Domain's board said Monday that if the company failed to
reject the EMC offer or reaffirm its approval of the NetApp deal,
it could lose NetApp's commitment and would have no assurance that
EMC would complete its offer. It also said it has been unable to
negotiate with EMC owing to its agreement with NetApp.
If Data Domain were to accept the EMC offer, it likely would
face a $57 million termination fee, the board added.
EMC shares were recently down 0.7% at $13.17 while NetApp shed
1.2% to $19.89.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com