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No, No, A Thousand Times No!

Data Domain rejected EMC’s hostile acquisition bid again
By Maureen O'Gara
Article Rating:
June 19, 2009 03:45 PM EDT
Reads:
 2,523

Data Domain rejected EMC's hostile acquisition bid again.

It told its shareholders Monday not to succumb to the siren song of EMC's $30-a-share cash tender offer because EMC could walk away at any time.

It prefers to go with NetApp even if it means taking $30 in cash and stock, mostly stock, and stock is so...so uncertain.

Wall Street thinks it smells maybe as much as a $5 sweetener coming that would win Data Domain's hand and continues to have its stock up over $30.

Problem is EMC isn't talking to Data Domain because it hasn't signed the necessary standstill and confidentiality agreements.

Both Data Domain and NetApp boards are entertaining a couple of suits for shortchanging stockholders, who still haven't voted on the NetApp offer.

EMC's tender offer closes June 29. At some point soon Federal Trade Commission regulators should indicate whether they think - as NetApp maintains - that there are antitrust obstacles in an EMC-Data Domain deal.

To push things along, EMC said Wednesday it would refile the notice of its bid, a move that would reset the FTC's 15-day clock. Its first request for approval expired Wednesday and the agency only started looking at the situation on Monday. EMC say it will give the FTC "adequate time to review the transaction."

Published June 19, 2009 – Reads 2,523
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. Twitter: @MaureenOGara

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