Data Domain to EMC: I Don’t Like You in That Way
by John Paczkowski
Posted on June 3, 2009 at 3:16 PM PT
Thought the showdown over Data Domain was over already? Think again. Wednesday afternoon NetApp (NTAP) said Data Domain (DDUP) had accepted its offer of $30 a share in cash and stock over an identical all-cash bid from EMC (EMC).
Apparently, Data Domain’s board did not find EMC’s offer to be the “win-win for both companies” that CEO Joe Tucci claimed. That said, its shareholders might. Apprised of the NetApp-Data Domain deal, EMC quickly issued a statement saying it plans go to the mat over this one. “EMC’s all-cash tender offer remains superior to NetApp’s proposed part-stock merger transaction,” Tucci said in a statement. “We are proceeding with our superior cash tender offer, which is not subject to any financing or due diligence contingency. We do not believe that the Data Domain stockholders will approve the merger transaction with NetApp. EMC urges the Board of Directors of Data Domain to not take any actions that would further impede a transaction that is a superior alternative for Data Domain’s shareholders.”
