Feeds

EMC forced to extend Data Domain offer

Barely any takers so far

The essential guide to IT transformation

EMC has lengthened the offer period for its $30/share bid for Data Domain by 11 days, after attracting a derisory level of acceptance for the bid. It says this is to provide "additional time to satisfy closing conditions".

EMC chairman and CEO Joe Tucci referred to the Federal Trade Commission's regulatory review of the bid in his statement: "We continue to anticipate a routine review by the FTC resulting in a timely regulatory approval."

The FTC is looking at the danger that a successful EMC takeover of Data Domain could put too much deduplication business in EMC's hands.

A competing $30/share, part-stock, part-cash bid from NetApp has been agreed by the Data Domain board.

So far just 0.28 per cent of Data Domain's shares, 174,645, have been committed to the EMC bid. The shares are priced at $33.13 on the open market and have been above the $30 point since June 2, showing that the market as a whole expects a higher bid. It is thought that this could come from EMC, since its present bid has been rejected by the Data Domain board and because it has greater cash resources than NetApp.

EMC has previously made an overwhelming bid for a company which had rejected a previous bid in favour of an accepted offer from another company. That was for Iomega which now sits comfortably in the EMC stable.

There are two class action lawsuits in existence, which argue that Data Domain's board has not done all it could to maximise the value of the company, as they argue it should, in the acquisition process, by favouring NetApp.

The ball is in EMC's court as NetApp has acceptance for its bid. With the tender offer extension in its pocket, it looks as if EMC could make a new bid next week, and then it will be decision time for NetApp. Does it raise its bid or not?

The omens for NetApp are not good - what EMC wants, EMC tends to get. ®

Boost IT visibility and business value

More from The Register

next story
Pay to play: The hidden cost of software defined everything
Enter credit card details if you want that system you bought to actually be useful
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
HP busts out new ProLiant Gen9 servers
Think those are cool? Wait till you get a load of our racks
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.