Data Domain "reviewing" EMC's offer

A day after saying it couldn't wait to merge with NetApp, Data Domain now says its shareholders should sit tight for a bit while it looks carefully at EMC's offer.

Data Domain is formally "reviewing" EMC's offer to acquire the company, just a day after saying the company was happy to become part of the NetApp family.

The saga is being played out in press releases.

Yesterday, Data Domain's position was that it had "... entered into a revised acquisition agreement under which NetApp will acquire all of the outstanding shares of Data Domain common stock ..." a statement that equated to a big thumbs' up for the deal.

Today, the company is taking a hard look at EMC's offer.

A press release issued today (USA time) says that "Consistent with its fiduciary duties and in consultation with its financial and legal advisors, Data Domain’s Board is reviewing EMC’s offer. At this time, the Board is not making a recommendation with respect to the EMC offer. Data Domain requests that its stockholders defer making a determination whether to accept or reject EMC’s offer until Data Domain has communicated to stockholders its position regarding the tender offer from EMC."

TechTarget ANZ is a technology news service and does not specialise in finance, but the team feels pretty sure that when a company asks its shareholders not to act on a takeover bid, it's a sign it thinks it can get them a better deal. We therefore expect the battle for Data Domain to continue and will update this story as news breaks.

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