The Channel logo


By | Kelly Fiveash 17th March 2008 18:08

Iomega wooed by new EMC offer

Unzips superior proposal

Iomega has changed its tune over EMC Corporation’s approach to buy the company after its suitor upped the offer to $205.5m.

The storage vendor, which last week rejected an unsolicited EMC offer worth about $178m, today said it considered the revised to be superior to a proposed all-stock transaction with a stockholder.

According to Iomega, the new offer will push up the bid price to as much as $3.75 per share. A week ago EMC indicated that it was prepared to offer to acquire Iomego for $3.25 per share.

In December, Iomega said that it planned, in an all-stock deal, to buy Chinese hard disk drive manufacturer ExcelStor, a subsidiary of Great Wall Technology, an Iomega shareholder. Great Wall in turn is a subsidiary of Chinese government-owned China Electronics Corporation.

Iomega’s change of heart today to enter into talks with EMC regarding its non-binding offer could lead to a definitive takeover proposal. However, the firm added that the purchase agreement with ExcelStor has not been withdrawn and “remains in force and effect”.

If that deal closes Great Wall Technology would hold a majority stake in Iomega, but it’s unclear how such an agreement would fit into any takeover plan from EMC.

An EMC spokesman said: "We're encouraged by Iomega's decision to move ahead with EMC discussions, and look forward to next steps," reports Associated Press.

Iomega shares closed up nearly nine per cent to $3.54 in morning trading on Wall Street, while EMC’s stock dropped more than four per cent to $14.15. ®

comment icon Read 1 comment on this article alert Send corrections


Frank Jennings

What do you do? Use manual typwriters or live in a Scottish croft? Our man advises
A rusty petrol pump at an abandoned gas station. Pic by Silvia B. Jakiello via shutterstock

Trevor Pott

Among other things, Active Directory needs an overhaul
Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella


League of gentlemen poster - Tubbs and Edward at the local shop. Copyright BBC
One reselling man tells his tale of woe