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Iomega ready to enter acquisition discussions with EMC

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Iomega ready to enter acquisition discussions with EMC

EMC has sent a revised buyout proposal to Iomega, which the company apparently is willing to accept. After rejecting a $3.25 bid for each of its shares last week, Iomega today said that a new $3.75 per share offer “would reasonably constitute a superior proposal” to its own idea to acquire  ExcelStor Great Wall Technology.

EMC’s proposal translates into a purchase price of $205.5 million, based on about 54.8 million outstanding shares. The offer reflects a 15% premium over Iomega’s closing price of $3.26 last Friday and a 41% premium over the closing price on March 7, just before the first offer was presented.   

Iomega’s board of directors said it has authorized Iomega to “furnish information to EMC and enter into discussions with it regarding its most recent proposal”.