NetApp prevails in bidding war with EMC over Data Domain?

Ian Lamont — Wed, 10 Jun 2009 10:28:54 -0400

Following last month's announcement that NetApp would buy backup storage vendor Data Domain (NASDAQ:DDUP) for $1.5 billion in cash and stock, a bidding war has broken out with NetApp rival EMC Corporation (NYSE: EMC).

EMC's surprise, all-cash offer of $1.8 billion forced NetApp to increase its bid to $1.9 billion. While Data Domain's board accepted the revised NetApp offer, EMC is not giving up. EMC Chairman and CEO Joe Tucci sent a "love letter" addressed directly to Data Domain's employees, which claims that it has the largest storage-focused R&D budget "in all of IT" and pledges that EMC would respect Data Domain's corporate culture if it acquired the company. Some Data Domain shareholders are also objecting to the NetApp deal, alleging "breaches of fiduciary duty and other violations of state law" on the part of Data Domain's board.

But there are also questions about EMC's motives in making a hostile bid. NetApp's Chief Marketing Officer believes that Data Domain's product lines and markets are more complimentary to NetApp than EMC, and suggested that EMC was making an offer "just to impede our progress." At least one analystconcurs, noting that EMC already has de-duplication technology that a Data Domain acquisition would bring.

According to a June 4 article, the NetApp and Data Domain deal will take 60 to 110 days to close, "subject to customary closing conditions including regulatory approval."

Prediction: NetApp's proposed acquisition of Data Domain closes by September 15, 2009. The criteria for judgment includes a confirmation from one or both of the companies in the form of a press release or a press report that the deal has closed by this date. An SEC filing that describes an expected closing date will not suffice for judgment.

NetApp prevails in bidding war with EMC over Data Domain?

Ian Lamont — Wed, 10 Jun 2009 10:28:54 -0400

According to a June 4 article, the NetApp and Data Domain deal will take 60 to 110 days to close, "subject to customary closing conditions including regulatory approval."

NetApp prevails in bidding war with EMC over Data Domain?

Ian Lamont — Wed, 10 Jun 2009 10:28:54 -0400

According to a June 4 article, the NetApp and Data Domain deal will take 60 to 110 days to close, "subject to customary closing conditions including regulatory approval."

NetApp prevails in bidding war with EMC over Data Domain?

Ian Lamont — Wed, 10 Jun 2009 10:28:54 -0400

According to a June 4 article, the NetApp and Data Domain deal will take 60 to 110 days to close, "subject to customary closing conditions including regulatory approval."