S&P 500
7,401.00
+0.91%
Dow Jones
49,665.70
+0.19%
Nasdaq 100
29,241.00
+2.43%
Russell 2000
2,860.88
+0.82%
FTSE 100
10,263.70
+0.48%
Nikkei 225
63,767.70
+2.68%

Investing

Data Domain Bidding War Heats Up (DDUP, NTAP, EMC)

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
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

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Douglas A. McIntyre |

Arbitrage Risk/Reward Inverted on Data Domain (DDUP, NTAP, EMC)

The long battle over Data Domain Inc. (NASDAQ: DDUP) may soon be coming to an end.  NetApp Inc. (NASDAQ: NTAP)…

Douglas A. McIntyre |

Can NetApp Earnings Continue The Run? (NTAP, DDUP, EMC)

NetApp, Inc. (NASDAQ: NTAP) is set to report earnings after the close of trading on Wednesday.  What will be interesting…

Douglas A. McIntyre |

How Much Higher Can Omniture Bid Fetch? (OMTR, ADBE, MSFT, GOOG, TWX)

Omniture Inc. (NASDAQ: OMTR) seems like another niche ad-tech play that has gone on over the recent years, but it…

Douglas A. McIntyre |

What The Ultimate Data Domain Buyer Really Wins (DDUP, EMC, NTAP, SYMC, CSCO, JNPR)

Data Domain, Inc. (NASDAQ: DDUP) keeps getting higher and higher bids in the bidding war that has erupted between EMC…

Jon C. Ogg |

Some Caveats in Considering Blackboard as a Buyout Target (BBBB)

Blackboard Inc. (NASDAQ: BBBB) finds itself as the latest rumored acquisition candidate for private equity.  The company is worth about…

Chris Lange |

Is This the NetApp Turnaround Investors Have Been Looking For?

NetApp reported better-than-expected fiscal first-quarter financial results after the markets closed on Wednesday.

Douglas A. McIntyre |

NetApp Averts Possible Takeover For Now By Acquiring Data Domain (NTAP, DDUP)

NetApp, Inc. (NASDAQ: NTAP) has long been considered a potential takeover target by many traders and investors.  Yet this morning…

Jon C. Ogg |

Private Equity Value for Best Buy (BBY, GME, WMT, AMZN)

After losing about a third of its value in the last year, Best Buy Co. (NYSE: BBY) may start to…

Douglas A. McIntyre |

Novell’s Only Hope: The Long-Awaited Buyout (NOVL)

If you have followed software companies for more than a decade, you have probably grown accustomed to seeing Novell, Inc.…

Top Gaining Stocks

Akamai
AKAM • Vol: 21,556,944
Micron Technology
MU • Vol: 65,135,624
Intel
INTC • Vol: 227,504,426
Monster Beverage
MNST • Vol: 15,284,847
Dell Technologies
DELL • Vol: 12,167,525

Top Losing Stocks

Mettler Toledo International
MTD • Vol: 539,266
Motorola Solutions
MSI • Vol: 3,101,643
Expedia
EXPE • Vol: 4,189,786
Coterra Energy
CTRA • Vol: 73,319,495
Fidelity National Information Services
FIS • Vol: 11,468,820