Feeds

EMC forced to extend Data Domain offer

Barely any takers so far

Build a business case: developing custom apps

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. ®

Build a business case: developing custom apps

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.