Menu
Data Domain board rejects EMC's offer

Data Domain board rejects EMC's offer

Data Domain's board is asking stockholders to reject EMC's unsolicited offer to purchase the company, and instead approve a merger with NetApp.

EMC and NetApp have been fighting a bidding war over the de-duplication and backup vendor throughout June, with EMC offering $1.8 billion, all in cash; and NetApp offering $1.9 billion of cash and stock.

NetApp and Data Domain had agreed to an acquisition when EMC joined the fray, leading to an escalation in price. In the latest round, Data Domain Monday announced that its board of directors sent a recommendation to Data Domain stockholders that they reject EMC's offer.

"Our Board is committed to enhancing stockholder value and, after careful review with our outside advisers, determined that the $30 per share EMC offer is not in the best interests of our stockholders at this time," Data Domain CEO Frank Slootman says in a press release. "We are pleased with the revised terms of NetApp's acquisition offer and feel it will provide great value to our shareholders and customers."

Data Domain faulted EMC for not engaging in direct negotiation, and attaching conditions that would allow EMC to terminate its offer at any time. Data Domain also said that it would have to pay NetApp a $57 million termination fee if it agrees to a merger with EMC and terminates the merger agreement with NetApp.

Despite the setback, EMC on Monday reiterated its all-cash offer to purchase Data Domain, and predicted that Data Domain's stockholders will not approve the merger with NetApp.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags emcnetappdata domaininternational news

Events

Featured

Slideshows

Channel kicks 2021 into gear as After Hours returns to Auckland

Channel kicks 2021 into gear as After Hours returns to Auckland

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Pantry at Park Hyatt in Auckland to kick-start 2021.

Channel kicks 2021 into gear as After Hours returns to Auckland
The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Show Comments