NetApp ups its offer for Data Domain
NetApp has improved its terms for the acquisition of Data Domain, but EMC still thinks it has the better offer on the table.
NetApp has upped its offer to $30 (18) a share in cash and stock, which works out as $1.9 billion in total, to combat the $30 a share pure cash offer from EMC earlier this week.
Frank Slootman, president and chief executive (CEO) of Data Domain, said: "We are pleased with the revised terms of NetApp's acquisition offer and feel it will provide great value to our shareholders and customers."
However, Joe Tucci, chief executive of EMC, still feels his offer is better for the company. "EMC's all-cash tender offer remains superior to NetApp's proposed part-stock merger transaction," he said in a statement. "We are proceeding with our superior cash tender offer, which is not subject to any financing or due diligence contingency."
He does not believe Data Domain's shareholders will agree with NetApp's terms. "EMC urges the Board of Directors of Data Domain to not take any actions that would further impede a transaction that is a superior alternative for Data Domain's shareholders," Tucci said.
Dan Warmenhoven, chairman and chief executive of NetApp, believes his firm is the better choice. "The synergies between our two companies will enable us to accelerate growth and market adoption more so than as separate entities. This partnership will create meaningful benefits for our global customers."
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