EMC Corporation, a leading developer and provider of information infrastructure technology, yesterday announced an extension of its all-cash tender offer to purchase all outstanding shares of Santa Clara, California-based Data Domain, Inc. common stock for $30 per share.
"To provide additional time to satisfy closing conditions, the offer period now expires on 10 July 2009," the company said in a press release.
The initial offering period, which began on 2 June 2009, was previously scheduled to expire on June 29, 2009.
"EMC's $30 per share all-cash offer remains superior to NetApp's stock and cash offer," BuzzJoe Tucci, EMC chairman, president and CEO, said.
"We continue to anticipate a routine review by the FTC resulting in a timely regulatory approval. We look forward to the execution of the definitive agreement and closing of the transaction with EMC," he added.
Early June, the board of Data Domain recommended the EMC's rival NetApp's cash-and-stock offer saying it offered better value for shareholders.
According to NetApp, the stock component of it offer will allow Data Domain shareholders to benefit from the combined growth of the companies.
There were speculations that in light of this EMC may increase the offer price to $35 per share. (See: EMC likely to up Data Domain stake with improved offer)
However, they have just extended the period.
The bidding war began on 20 May, when the the Sunnyvale, California- based NetApp proposed to acquire all of the outstanding shares of Data Domain common stock for $25 per share in cash and stock.
On 1 June, EMC Corp, rivaled and upped the stakes by offering $30 per share in cash, valuing Data Domain at approximately $1.8 billion, net of Data Domain's cash.
Comsequently, on 3 June, NetApp made a revised offer to buy Data Domain's common stock for $30 per share in cash and stock. (See: NetApp ups offer for Data Domain with $1.9 billion)
EMC Corp's tender offer is being transacted through Envoy Merger Corporation, a wholly owned subsidiary of EMC formed for the purpose of making the offer.
Approximately 174,645 shares of Data Domain common stock, representing approximately 0.28 per cent of the common stock outstanding, have been tendered as on 26 June 2009.