San Diego — Iomega’s board of directors today gave company executives the go-ahead to enter talks with EMC concerning the latter’s most recent unsolicited bid to acquire the storage maker.
Iomega said it received a revised unsolicited, non-binding offer from EMC that would pay about $205.5 million for all of Iomega’s outstanding shares. EMC’s offer is for $3.75 per share of the 54.8 million outstanding shares, Iomega reported.
EMC’s earlier proposal made on March 10 was deemed insufficient by Iomega’s board, but this one passed financial muster, a company spokesman said.
EMC is a 30-year old company that builds corporate information infrastructures.
With the go-ahead from its board, Iomega’s executives, financial and legal counsel will begin the due diligence process. However, Iomega stated this does not indicate that the board has given its approval for the deal.
EMC could not be reached for a reply.