EMC Extends Cash Tender for Data Domain
From June 29 to July 10
This is a Press Release edited by StorageNewsletter.com on June 29, 2009 at 3:37 pmEMC Corporation announced an extension of its all-cash tender offer to purchase all outstanding shares of Data Domain, Inc. common stock for $30 per share. To provide additional time to satisfy closing conditions, the offering period now expires at 12:00 midnight Eastern Daylight Time (EDT) on July 10, 2009. The initial offering period, which began on June 2, 2009, was previously scheduled to expire at 12:00 midnight EDT on June 29, 2009.
Joe Tucci, EMC Chairman, President and CEO, said: "EMC’s $30 per share all-cash offer remains superior to NetApp’s stock and cash offer and, very importantly, delivers to Data Domain stockholders the price certainty and price protection its management team and board stated as important priorities during their negotiations with NetApp. We continue to anticipate a routine review by the FTC resulting in a timely regulatory approval. We look forward to the execution of the definitive agreement and closing of the transaction with EMC."
The tender offer is being transacted through Envoy Merger Corporation, a wholly-owned subsidiary of EMC formed for the purpose of making the offer. Approximately 174,645 shares of Data Domain common stock, representing approximately 0.28% of the common stock outstanding, have been tendered as of 3:30 p.m. EDT on June 26, 2009.
Comments
EMC estimates that its all-cash offer at the same price of $30 per share is better than NetApp's one in stock and cash, and decided to extent the deadline for the Data Domain's acquisition. But only only 0.28% of the common stock outstanding have been tendered on June 26, 2009.
We continue to think that EMC will finally increase its offering to more than $30 per share in the next future to get the de-dupe company.
The share of Data Domain is currently priced at $33.