The war for Data Domain, Inc. (NASDAQ: DDUP) is heating up. It was first NetApp, Inc. (NASDAQ: NTAP) that offered to buy the company. Then EMC Corp. (NYSE: EMC) came out with a challenging bid. Now, NetApp is back with a higher revised buyout offer. The new offer values Data Domain at $30.00 per share. Traders believe an all-out bidding war may be about to break out.
NetApp’s first bid was $1.5 billion, or $25.00 per share in cash and stock. NetApp’s shares had actually risen higher than the official price. But EMC’s rival bid came in at $1.8 billion, or $30.00 per share. EMC’s offer was all cash, leaving no price-risk.
The new price for Data Domain common stock is valued at $30.00 per share in cash and stock. This is listed as a transaction valued at approximately $1.9 billion, which is actually net of Data Domain’s cash and subject to certain adjustments.
There was an analyst call yesterday calling a possible $35.00 peak buyout price. Shares closed at $31.58 yesterday and are trading up around $32.50 in early trading. With a premium of this sort, the belief is obviously that the bidding prices are heading higher rather than lower.
NetApp’s shares appear to be trading down close $19.00 in pre-market trading after closing at $19.34 Tuesday. EMC shares are trading at $12.75 after closing at $12.85 yesterday.
Jon C. Ogg
June 3, 3009
In 20 Years, I Haven’t Seen A Cash Back Card This Good
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
