California-based company receives unsolicited acquisition proposal and is likely to decline it
San Diego-registered Iomega Corporation, which is a worldwide leader in innovative storage and network security solutions for small and mid-sized businesses, consumers and others, has announced that it has received an unsolicited non-binding indication of interest from EMC Corporation. In this indication, EMC said that it is ready to offer to acquire the outstanding common stock of Iomega for $3.25 per share, assuming a total of approximately 54.8 mln outstanding shares.
Iomega’s board of directors decided however that EMC’s proposal would not reasonably constitute a superior proposal, within the meaning of the share purchase agreement between the selling stockholders Iomega, Cayman Islands-based ExcelStor Great Wall Technology Limited and ExcelStor Holdings Limited, Chinese companies Shenzhen ExcelStor Technology Limited and Great Wall Technology Company Limited, and British Virgin Islands-based ExcelStor Holdings Limited.
Iomega and the selling stockholders including the above-named BVI company executed a share purchase agreement in December 2007, in connection with a business combination. Now, Iomega and the selling stockholders are preparing the required filings for obtaining the necessary regulatory and stockholder approvals for the business combination.