Data-storage company Data Domain Inc. (DDUP) said it is
reviewing the bid to be acquired by EMC Corp. (EMC) and urged
shareholders to take no action regarding the tender offer as the
bidding war between EMC and NetApp Inc. (NTAP) is expected to
continue.
The disclosure comes a day after Data Domain and NetApp
announced a revised $2 billion bid for Data Domain, matching EMC's
surprise $30 a share offer made Monday. NetApp is offering a
combination of cash and stock, while EMC's bid is all cash.
Data Domain closed Wednesday at $32.53, showing investors
believe the ultimate takeover price will be higher than the current
offers.
NetApp last month agreed to acquire Data Domain for $25 a share
to tap into the company's corporate presence. Data Domain
specializes in technology for "deduplication," or avoiding repeated
storage of the same data. The technology can reduce demand for
storage devices, and it is a selling point at a time when corporate
computer chiefs are trying to cut hardware costs and save floor
space and electricity use in computer rooms.
While bidding wars have been scarce in the technology sector,
Oracle Corp. (ORCL) recently outbid International Business Machines
Corp. (IBM) for Sun Microsystems Inc. (JAVA). Analysts have said
depressed prices for small companies and cash hoards at big
companies may lead to more competitive deals in the sector.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com