NetApp: Our Data Domain bid remains 'superior'
EMC has proven tenacious in trying to outbid NetApp in the battle to buy Data Domain. But NetApp isn't going down without a fight.
After Monday's announcement that EMC had upped its offer for Data Domain to $33.50 a share, NetApp countered with two responses, the first noncommittal but the second quite clear.
The first word from NetApp:
"In response to EMC's revised, unsolicited offer, the NetApp Board of Directors will carefully weigh its options, keeping in mind both its fiduciary duty to its stockholders and its disciplined acquisition strategy," Dan Warmenhoven, chairman and CEO of NetApp, said in a statement. "We will provide an update shortly."
That update came later Monday as NetApp affirmed its intention to acquire Data Domain, still asserting its bid as "superior." The company also announced that the Securities and Exchange Commission has declared NetApp's offer as effective, clearing the way for a shareholder vote.
Additionally, the Federal Trade Commission has granted the merger agreement early clearance. This means the FTC will not conduct any further reviews of the merger, allowing NetApp's acquistion of Data Domain to close on a timely basis if approved by stockholders.
"We are pleased to have passed these important milestones, which we believe set us on course for a clear and timely path to close," said Warmenhoven. "We continue to believe that our offer is superior to the unsolicited offer from EMC."
Data Domain's board has set up a special stockholder meeting for August 14 to vote on the merger.
The fight to own Data Domain started on May 20 with NetApp's original offer of $25 per share. In early June, EMC volleyed with a higher per-share bid.
Despite lawsuits against Data Domain over the agreement with NetApp, the two companies seemed determined to complete their deal. Now the ball is back in EMC's court.
Lance Whitney wears a few different technology hats--journalist, Web developer, and software trainer. He's a contributing editor for Microsoft TechNet Magazine and writes for other computer publications and Web sites. You can follow Lance on Twitter at @lancewhit. Lance is a member of the CNET Blog Network, and he is not an employee of CNET. 
I like NTAP better than EMC for a lot of reasons, but don't agree with you here. Please check the facts before you post next time.
- by Maclover1 July 7, 2009 3:12 PM PDT
- I regularly work with VMware employees, about half a dozen. Also my VCP training classes were given by multiple VMware employees. None of them have anything good to say about EMC.
- Like this Reply to this comment
-
-
- by Sojero July 8, 2009 4:36 PM PDT
- Simple extrapolation Maclover1,
- Like this
-
(6 Comments)My current sales rep for NetApp, a recent former EMC sales rep, believes that EMC will eventually sell off VMware when market penetration saturates. He said that if EMC buys a company and fully integrates it then they keep it. If they let it run on its own and keeps its name they eventually will sell it once its maxed its potential.
What do you expect from a former EMC sales rep now working for NetApp? Do you really think his judgment and assertions would be fair? And was he part of the senior management with some kind of insider information to have come that conclusion. The real fact of the matter is that every company has its own share of unhappy employee, whether this is an indication of a company's prevailing culture is very subjective.