Iomega Corporation (NYSE: IOM) has announced that it has received a revised unsolicited non-binding indication of interest from EMC Corporation (NYSE: EMC – News) over its prior unsolicited buyout offer. EMC has indicated that it is prepared to offer up to $3.75 per share of Iomega, subject to completion of due diligence.
Iomega’s board of directors has determined that the revised acquisition proposal would reasonably constitute a superior proposal from ExcelStor. As permitted by the ExcelStor Purchase Agreement, Iomega’s board of directors has authorized Iomega to furnish information to EMC and enter into discussions with it regarding its most recent proposal.
As part of the ExcelStor Purchase Agreement, Iomega must provide the Selling Shareholders with at least 2 business days notice prior to entering into discussions with or furnishing any information to EMC in response or with respect to the EMC acquisition proposal. Iomega did provide notice to the selling shareholders on Friday, March 14, 2008. In December, 2007, Iomega signed a merger agreement with ExcelStor to issue some 84 million shares in exchange for all outstanding ExcelStor common stock.
A week ago, Iomega rejected a prior $3.25 per share buyout offer from EMC. As far as how this ranks, Iomega has seen shares trade between $2.26 to $5.75 over the last 52-weeks. This merger dance may not yet be over, but this time EMC is warming up to the idea.
Jon C. Ogg
March 17, 2008