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The gloves are off.
Storage vendors and the data backup management industy are buzzing about the new chapter in EMC’s effort to acquire Data Domain.
EMC CEO Joe Tucci is doing all he can to keep Data Domain out of the hands of NetApp - the other bidder in this tug-of-war. Just this week Tucci reached out to Data Domain in an open letter, telling employees they are better off with EMC than NetApp.
In his Data Domain letter, Tucci said many employees of past acquisitions have risen to “leadership positions” in EMC. He also made it clear how much he respects Data Domain.
“You have built a terrific company,” he wrote. “You have a well-earned reputation for attracting skilled storage professionals who excel at innovation. And we admire how uncompromising you are in caring for and serving your customers. In many ways, you remind of us EMC.”
Industry observers are confused by Tucci’s gesture. Why try to make nice-nice with Data Domainers? After all it’s Data Domain’s shareholders who will decide who buys the company.
Some clarification came in the form of another letter. This one released by an EMC spokesman and sent to reporters. The spokesman wrote: “Joe chose the open letter format as the best way to express directly to Data Domain employees his thoughts about why EMC is the best choice for them.”
The email also included a reminder that “before signing the definitive agreement with NetApp, Data Domain’s management excluded EMC from consideration as a potential acquirer despite EMC’s attempt at an open dialog. Many outside followers have wondered why the Data Domain board would not have wanted to create a level playing field for other companies that may have been interested in acquiring Data Domain.”
This is getting nasty folks - and it has the potential to get nastier.
Word is EMC is expected to raise its cash offer for Data Domain if necessary. And its looking like it will be necessary. EMC has a $1.8 billion cash-only offer on the table. NetApp is now offering $1.9 billion - part cash, part stock. For now, Data Domain’s board is leaning toward NetApp - and a comment on EMC’s offer is expected by June 16.
Prepare for quite a show because this is far from over - at least in the eyes of EMC.
Get Caught Up:
NetApp Starts Bidding War For Data Domain
EMC Eyes Data Domain For Acquisition
| Around the ’sphere:
EMC appeals to Data Domain workers (Dealscape - Technology) - EMC CEO Joe Tucci urges Data Domain employees to favor a deal with his company instead of one with NetApp. E-Commerce News: Deals: EMC’s Data Domain Bid Puts NetApp in Tough … - Everything you need to know about doing business on the Internet. Information for C-Level executives and small-to-mid-sized business managers. EMC, NetApp war for Data Domain could drag on :: TastyPicks - Posted on Jun 10, 2009. NEW YORK (Reuters) - The bidding war over storage company Data Domain Inc could drag on for weeks until antitrust regulators review competing offers from EMC Corp and NetApp Inc for red flags. … EMC vs NetApp for Data Domain: Joe Tucci Sends Open Letter | SOA … - 13th SOA World Conference & Expo - June 23-24 2008 New York City. |
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