EMC Extends Data Domain Bid as FTC Decision Looms

EMC (NYSE: EMC) has extended its takeover offer for Data Domain (NASDAQ: DDUP) ahead of a critical decision from the FTC (see Data Domain’s Just Not That Into EMC).

EMC late Friday said it was extending its $30-a-share cash offer for the data deduplication specialist until midnight on July 10, the first of what could be several extensions before the takeover battle with rival NetApp (NASDAQ: NTAP) is resolved.

Just 0.28 percent of Data Domain investors have tendered their shares in response to EMC’s offer, but the data storage giant owns about 4 percent overall of Data Domain common stock. NetApp claims “voting agreements” in favor of its offer with about 20 percent of DDUP shareholders, but a merger deal with EMC would nullify those agreements.

EMC CEO Joe Tucci reiterated the company’s claim that its cash offer is “superior to NetApp’s stock and cash offer and, very importantly, delivers to Data Domain stockholders the price certainty and price protection its management team and board stated as important priorities during their negotiations with NetApp.”

Data Domain has expressed a preference for NetApp’s offer despite shareholder lawsuits claiming that the company failed to get the most value for shareholders. Neither NetApp nor EMC have raised their offers beyond $30 a share, leaving the matter — for now — in the hands of shareholders, although some observers have said they expect EMC to raise its bid as a shareholder vote on the offers nears.

NetApp has claimed that an EMC-Data Domain combination could face antitrust obstacles. That view has been largely dismissed by analysts, but the Federal Trade Commission is nearing a deadline for deciding whether to conduct a lengthy antitrust review or let the deal go through unchallenged. A decision from the FTC could come any day.

Tucci touched on the matter in his statement, saying, “We continue to anticipate a routine review by the FTC resulting in a timely regulatory approval. We look forward to the execution of the definitive agreement and closing of the transaction with EMC.”

Follow Enterprise Storage Forum on Twitter

Paul Shread
eSecurity Editor Paul Shread has covered nearly every aspect of enterprise technology in his 20+ years in IT journalism, including an award-winning series on software-defined data centers. He wrote a column on small business technology for Time.com, and covered financial markets for 10 years, from the dot-com boom and bust to the 2007-2009 financial crisis. He holds a market analyst certification.

Latest Articles

How Tape Storage is Used by Banco Bradesco, Treasury of Puerto Rico, Computational Medicine Center, Calgary Police Department, and Franklin Pierce University: Case Studies

Most technologies eventually outlive their own usefulness, but a rare few withstand the passage of time. While floppy discs vanish beyond the horizon, taking...

How Servers are Used by Ducati, Dashen Bank, Vivo Energy, Skyhawk Chemicals, and Feinberg School of Medicine

Out-of-date legacy systems can act as the weak link in an organization’s push for innovation. This is particularly true of legacy servers attempting to...

How Flash Storage is Used by BDO Unibank, Cerium Networks, British Army, University of Pittsburgh Medical Center, and School District of Palm Beach County:...

Flash storage is a solid-state technology that uses non-volatile memory, meaning data is never lost when the power is turned off. It can be...