DOW JONES NEWSWIRES
EMC Corp. (EMC) raised its takeover bid for rival Data Domain
Inc. (DDUP) by 11% to $2.2 billion, raising its stakes again in a
battle with NetApp Inc. (NTAP) to acquire the maker of data-storage
products.
Data Domain specializes in technology that helps eliminate the
storage of redundant data, and its particular niche makes it
attractive to bigger players EMC and NetApp.
EMC raised its all-cash offer to $33.50 a share, up from last
month's bid of $30. The company stepped in after Data Domain agreed
to a cash-and-stock offer of $25 a share from NetApp. They
subsequently agreed to a higher price of $30 to match the EMC
bid.
Investors had been expecting still-higher bids, with Data
Domain's stock trading above $30. It was recently up 2.9% premarket
at $34.18.
A Data Domain spokesman declined to comment while NetApp
officials weren't immediately available to comment.
EMC reiterated Monday its deal offered "greater certainty" and a
higher value per share than NetApp. EMC said the deal could be
completed within two weeks, a month earlier than NetApp's offer.
EMC added it has removed all deal protection provisions - including
a break-up fee - and urged Data Domain's board to do the same with
its NetApp deal.
EMC again extended its tender offer to July 17 at midnight EDT.
As of Thursday, about 195,353 shares, or 0.2%, had been tendered,
or about 20,708 more than on May 26, when EMC had last extended the
offer.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com