Data Domain CEO Slootman Next CEO of NetApp ?

Levi & Korsinsky, LLP announces that a class action lawsuit has been filed in the Court
of the Chancery of the State of Delaware challenging the proposed acquisition of Data Domain, Inc.

The Complaint arises out of the announcement by Data Domain stating that it had entered into a definitive merger agreement with NetApp, Inc. Under the terms of the proposal, Data Domain’s shareholders would receive $30.00 to be paid in a combination of cash and NetApp stock. In addition, NetApp offered positions on its board to certain Data Domain officers and there are rumors that the Data Domain CEO Slootman could be the next CEO of NetApp. This raises questions as to whether the sales process conducted by the Board was fair and open.

Comments

That the fifth class action filed by U.S. law firms concerning the acquisition of Data Domain. And probably not the last one.

These companies are attracted by the Data Domain / NetApp / EMC deal as it's a big one, $1.9 billion, which means plenty of money to get eventually.

Their strategy is always the same: they announce a class action and then try to recruit shareholders (here from Data Domain) telling them: "We do that for you. You have nothing to pay but you will receive a percentage of what we will get if we succeed".

We didn't know this rumor that Frank Slootman, president, CEO and board member of Data Domain since 2003, could be the next CEO of NetApp. If this information is confirmed, of course, that's an excellent argument to explain why his company prefers to be acquired by NetApp for a STOCK AND CASH transaction of $1.9 billion, rather than for an ALL-CASH deal of the same amount by EMC.

Read also:
Kendall Law Group Files a Complaint vs. Data Domain and NetApp