Feeds

EMC forced to extend Data Domain offer

Barely any takers so far

Security for virtualized datacentres

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.