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 However, the firm added that the purchase agreement with ExcelStor has not been withdrawn and “remains in force and effect”.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


George Osborne, photo: HM Treasury
shutterstock_183801788_container ship

Chris Mellor

The SAN growth glory days are well and truly over, so where next?

Tom Whipp

Insurance industry insider tells all
Crypto fingers


Michael Dell. Pic by Joi Ito
Cool Texas dude is just your average billionaire
The Seeing Eye by Valerie Everett, Flickr, CC2.0
Follow the money – or, at least, our projections
Boats storm girl photo via Nikolina Mrakovic
The puppets from Team America: World Police gather at a bar for drinks.