EMC Makes Bid For Iomega, Which Says “No Thanks”
Iomega (IOM) this morning announced that it had received an unsolicited $3.25 a share takeover offer from EMC (EMC), but that its board met yesterday and effectively said “no thanks.”
In December, Iomega announced a deal to acquire ExcelStor Group in a stock deal in which 60% of Iomega’s shares would be owned by ExcelStor parent Great Wall Technology, a public company traded in Taiwan.
In rejecting the EMC bid, Iomega said the new offer “would not reasonably constitute a superior proposal” to the ExcelStor deal. “The board reached its conclusion based upon valuation and the board’s view that the proposed due diligence contingencies were overly broad,” Iomega said.
Somehow, I don’t think this is the end of this story.
Iomega shares today are up 34 cents, or 12.8%, at $3.
Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.
