Data Domain rejects EMC's offer, embrace NetApp
By siliconindia   |   Thursday, 18 June 2009, 21:05 IST   |    1 Comments
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Data Domain rejects EMC's offer, embrace NetApp
Bangalore: Data Domain has rejected EMC's unsolicited offer to purchase the company. The company's board of directors (BoD) has rather voted in favour of the merger with NetApp over EMC. Dan Warmenhoven, Chairman and CEO, NetApp, said,"We are very pleased with Data Domain's recommendation that stockholders continue to support NetApp's merger proposal over EMC's unsolicited offer. This announcement reaffirms our belief that the NetApp proposal provides attractive short- and long-term value to Data Domain stockholders." NetApp first announced its definitive agreement to acquire Data Domain on May 20, 2009, and announced its revised acquisition agreement on June 3, 2009. Warmenhoven added "In our merger, we believe customers will benefit from a lower risk of business disruption, enhanced products and services offering. The ability of the NetApp sales and marketing organization will bring Data Domain's products to more enterprises in the United States and to more customers in Europe and Asia." However, the law firms have filed suit against the Data Domain sayingthat the company's board of directors violated their fiduciary duties by approving the original and the restructured deals with NetApp, both of which give NetApp an improper bidding advantage in the form of a termination fee. "Under the terms of the proposal, Data Domain's shareholders would receive $30 to be paid in a combination of cash and NetApp stock," said Levi & Korsinsky, a law firm in a statement.

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