Data Domain chose NetApp's takeover bid over EMC, and now dissident shareholders are crying dirty dealing. Two law firms have launched separate class-action lawsuits against Data Domain's board of directors, saying the bidding process wasn't fair and open. On Monday, Data Domain rejected a hostile takeover offer from storage …
If they are so pissed off they should just dump their stock now, it's already at $32, which is more than EMC is offering. Take your money and go away. Good riddance.
Perhaps you are a little unclear on the concept of what a stockholder is, and how the Board is a body responsible for looking out for the best interests of them...not their own. There was speculation that EMC might bid up, and that could potentially mean that the DDUP refusal to negotiate for a better price and subsequent rejection did not earn the premium they could have for the OWNERS of the company: the stockholders. This means that the potentially nepotistic decisions could have cost stockholders $5 a share or more, would you be pissed off if those were your shares? Watch for the injunction.
Shareholders vs industry et. al.
The move may have been questionable from the shareholder perspective, but for the industry as a whole this was the better move. EMC has grown its power base to the point that is is almost the only game in town. It is good to have competition and this will give the datadomain and netapp conglomeration a good battle stance against them.
Of course the share holders really don't care what is good for the industry as a whole, they just want their money. Kinda sounds like a recent investment banking problem that some of us may have heard about.
re: good for the industry
I tend to agree with Mike. NetApp is an up-and-comer and a viable threat to EMC's dominance. Hitachi, IBM and HP fall short in product offerings at the mid-tier, and are people really buying a shitload of Symmetrix type disk right now?
EMC probably wants DataDomain's technology to try to implement it into primary storage. NetApp has primary storage dedupe today-- a feat no one else is achieving without bolt-on software-- but I bet they still value the inline technology and doing it without the journaling overhead that WAFL brings along.
I'm sure others have talked to DD but there probably is something to this merger, as opposed to a standard sell-off / acquisition.