Data Domain ha recommended that its shareholders ignore EMC's offer to acquire the company and instead accept NetApp's...
bid, despite the latter bid being some $US100 million lower.
"Our Board is committed to enhancing stockholder value and, after careful review with our outside advisors, determined that the $US30 per share EMC Offer is not in the best interests of our stockholders at this time," the company's CEO Frank Slootman said in a press release issued today. "We are pleased with the revised terms of NetApp's acquisition offer and feel it will provide great value to our shareholders and customers."
The company also cited the inflexible nature of EMC's offer and likely costs of backing out of the NetApp buy as resons for the decision.
EMC has restated its offer to buy the company with CEO Joe Tucci stating that he believes the all-cash offer delivers more certainty to Data Domain shareholders.
5:00 PM UPDATE
NetApp has since welcomed Data Domain's decision, issuing a press release in which Chairman and CEO Dan Warmenhoven says "We are very pleased with Data Domain’s recommendation that stockholders continue to support NetApp’s merger proposal over EMC’s unsolicited offer."
The release adds that “This announcement reaffirms our belief that the NetApp proposal provides attractive short- and long-term value to Data Domain stockholders with no significant antitrust concerns and a clearer and more timely path to close."
"We look forward to proceeding with our proposal, bringing the offer to a stockholder vote, and beginning to execute on the promise of this compelling combination."
“Importantly, we believe a combination of NetApp and Data Domain brings significant benefits to customers and employees,” continued Warmenhoven, who added that he believes NetApp is ideally positioned to expand Data Domain's presence in Asia.