Storage Informer
Storage Informer

NTAP reaches limit on their ATM card

by on Jun.03, 2009, under Storage

NTAP reaches limit on their ATM card

EMC logo NTAP reaches limit on their ATM card

These things aren’t over until they’re over but I have to question NetApp’s conviction to getting a deal with Data Domain done. Were I a DDUP shareholder I’d see their revised offer as weak. EMC put a bid in for…

These things aren’t over until they’re over but I have to question NetApp’s conviction to getting a deal with Data Domain done. Were I a DDUP shareholder I’d see their revised offer as weak.

EMC put a bid in for DDUP at $1.8B all cash and a quick close, a superior offer to NetApp’s original $1.5B cash + stock deal. NetApp have come back with an offer of $1.9B cash and stock which is easily within the reach of a raised EMC all cash offer.

I’ll got their counter offer wrong, I predicted that NetApp would come back with a $2B cash+stock, $2.1B if they were hardcore about closing this thing.

They offered less than I expected and I think mentally NetApp’s Board have started to walk away from this deal.

EMC’s next bid, regardless of if it’s $1 more than $1.9B all cash could very well see NetApp walk away completely.

I have no doubt that EMC M&A are hardcore about closing this deal. There probably will be a revised EMC offer, it’ll come fast, (it might even come by COB today) and then NetApp’s part in this could very well be over regardless of how it turns out.

As for this threat of regulatory challenges, this is NetApp walking away and then crying to the government about the fact they didn’t have the juice to make the deal happen.

Looking at the state of NetApp’s current suit against Sun Oracle and their failed suit against BlueArc you’d think the last thing they’d want would be to be dragged in and out of court rooms.

It would also be interesting to see all those NetApp press releases and public comments touting their deduplication leadership be dredged up to show how competition and innovation in the capacity optimisation space is alive and well in a market which features players as large as IBM with Diligent and HP with their home grown tech and Sepaton OEM relationship, right way down to the scrappy startups such as Ocarina and Exagrid.

This is just a continuation of a long line of rhetoric from people frustrated that they can’t seal the deal.

Had there been a lot less bluster and more action they’d already own Data Domain.

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