EMC Plans to Raise Data Domain Bid to $35
According to sources
By Jean Jacques Maleval | June 15, 2009 at 3:47 pmTo read this article from Reuters, click on:
Comments
IF this information of Reuters is confirmed, we don't think that NetApp will follow the EMC's offering and the shareholders of Data Domain will probably accept it.
It will a big success for EMC and as the same time a large defeat for competitor NetApp, finally without the great de-dupe technology of Data Domain. The NetApp’s board will probably consider the replacement of chairman and CEO Dan Warmenhoven, now 58. President and COO Tom Georgens, 49, is a favorite to succeed to Warmenhoven if the board opts for an inside executive.
The other question concerning this acquisition of Data Domain by EMC: will it win antitrust clearance? We think so. De-dupe is just an add-on functionality for storage systems. Do you imagine antitrust action for compression or CDP? Furthermore, there are currently other companies in de-dupe, including NetApp, even if it is for primary and not secondary storage like Data Domain.
Today, the share of Data Domain was at $32.8, more than the $30 proposed by EMC and NetApp, suggesting investors expect to see EMC raising its offer.
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