If you have followed mobile storage solutions for computing for more than a decade, you know Iomega Corp. (NYSE: IOM). The company used to be the leader for its Zip Drives, but by now many mobile professionals carry around smaller flash drives that are small enough to fit into your pocket and even onto a key chain.
The company announced that it has received an unsolicited acquisition offer from EMC Corp. (NYSE: EMC) for $3.25 per share. Apparently the board of directors has determined during a weekend board meeting that the unsolicited offer falls short of a proposed share purchase agreement with ExcelStor Great Wall Technology Limited, Shenzhen ExcelStor Technology Limited, Great Wall Technology Company Limited, ExcelStor Group Limited, and ExcelStor Holdings Limited.
Iomega noted that it made the determination based on valuation and a view that EMC used overly broad diligence consistencies. Iomega and ExcelStor Holdings Limited are currently in the process of gaining regulatory and stockholder approval for the share purchase agreement announced December 12, 2007.
Iomega’s stock has traded as low as $2.26 and as high as $5.75 over the last year. Despite many troubles or at least fierce competition, it’s really no surprise that Iomega would snub this offer. Shares closed at $2.66 Friday and are up at $2.95 shortly after the open.
Jon C. Ogg
March 10, 2008