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Iomega Rejects Acquisition Bid From EMC

Iomega’s board of directors declined an "unsolicited" offer from EMC to purchase the company for $3.25 per share, translating into an acquisition price of $178.1 million. Iomega stated EMC’s requirements for the due diligence process of the possible purchase were "overly broad".

Iomega shares are trading currently around $2.66, giving the company a market capitalization of about $145.7 million.

Iomega said in December that it would acquire ExcelStor, a maker of hard disk drives, security storage and external storage. The company said that it will be issuing 84 million shares of common stock in exchange for all outstanding ExcelStor common shares, representing 60% of the fully diluted capitalization of Iomega. Iomega was valued at about $200 million at the time of the announcement.