Iomega and EMC getting together?

Iomega Corp., a data storage company best known for the Zip drive, said Monday it considers a revised $205.5 million takeover offer from EMC Corp. to be superior to a proposed all-stock transaction with a stockholder.

San Diego-based Iomega said EMC’s revision to its earlier, unsolicited offer would increase the offering price for Iomega’s 54.8 million outstanding shares to as high as $3.75 per share. An offer from EMC that Iomega disclosed a week ago proposed a price of $3.25 per share, or about $178.1 million.

While EMC’s offer is nonbinding, Iomega said its board “has determined that the revised acquisition proposal from EMC would reasonably constitute a superior proposal” to an agreement reached in December with other parties.

Under that deal, Iomega agreed to acquire China’s ExcelStor Group from a shareholder of the California company in an all-stock deal that would more than double the number of its outstanding shares.

Had that deal closed, Great Wall Technology Co. Ltd. — an Iomega shareholder and parent firm of ExcelStor — would have held a majority stake in Iomega, and ExcelStor would operate as a wholly owned subsidiary of Iomega. Financial terms were not disclosed.

Iomega had considered EMC’s initial, lower offer inferior to the other transaction. (link)

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