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Red Hat: Article

Data Domain Accepts Upped NetApp Bid; EMC Proceeds with Tender

EMC, claiming the superior bid, has started a tender offer
By Maureen O'Gara
Article Rating:
June 4, 2009 09:30 AM EDT
Reads:
 2,480

Wednesday morning NetApp raised its offer for Data Domain to $30 a share to match EMC’s bid. However, it can’t match EMC’s deeper pockets. It’s still offering a mix of cash and stock but claims its new bid is really worth $1.9 billion net of Data Domain’s cash.

By Wednesday evening Data Domain had again accepted its offer though its stockholder may have something to say about that.

EMC is offering $1.8 billion in straight cash no financing. That’s $30 in folding money compared to NetApp’s $16.45.

When last seen EMC, claiming the superior bid, had started a tender offer and warned the Data Domain board not to get in its way.

The tender offer expires June 29.

The NetApp deal could take two-four months to close

In anticipation of a counter-bid and figuring that EMC will do what has to be done to deny NetApp the revenues spoils of this little battle, Wall Street has pushed Data Domain’s stock up over $32.50. It was in the mid-teens before it got so popular.

Published June 4, 2009 – Reads 2,480
Copyright © 2009 SYS-CON Media, Inc. — All Rights Reserved.
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More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

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