DDUP Rejects EMC, Suit Filed
The board of directors at Santa Clara, CA-based Data Domain (NASDAQ: DDUP) yesterday recommended that shareholders reject a $1.8 billion, $30-per-share cash tender offer from Hopkinton, MA-based EMC (NYSE: EMC). The board of the data deduplication software company stuck to its earlier decision to pursue a merger with Sunnyvale, CA-based NetApp (NASDAQ: NTAP), which is also offering $30 per share in cash and stock but whose offer is valued at $1.9 billion overall. Meanwhile, two law firms said yesterday that they filed a class-action shareholder lawsuit against Data Domain in Delaware on June 12; the firms, Bernstein Litowitz Berger & Grossmann LLP of New York, NY, and Grant & Eisenhofer, P.A., of Wilmington, DE, said in a press release that the board members at Data Domain are “breaching their fiduciary duties to their shareholders by refusing to negotiate with a potential acquirer, EMC Corporation…and for agreeing to sell Data Domain to NetApp without taking any steps to maximize the price paid to Data Domain’s shareholders.”
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