Iomega has rejected an unsolicited takeover bid by EMC.
In a statement on its website yesterday, the storage hardware vendor says “Iomega announced today the receipt of an unsolicited non-binding indication of interest from EMC, in which EMC indicated that it is prepared to offer to acquire the outstanding common stock of Iomega for $US3.25 a share, assuming a total of approximately 54.8 million outstanding shares”.
The offer wasn’t considered attractive, Iomega says in the statement.
“Iomega’s board of directors met on March 9, 2008 and unanimously determined that the proposal from EMC would not reasonably constitute a meaningful proposal …”
Iomega is in the process of acquiring ExcelStor, a subsidiary of GreatWall Technology, which is an Iomega shareholder.
The result of that transaction, which is still subject to regulatory approval, is that GreatWall will have a majority shareholding in Iomega.
Iomega announced the ExcelStor buy in December.