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EMC Extends Offer For Iomega

Offer for the outstanding shares of San Diego-based Zip drive maker scheduled to expire on Wednesday has been extended until May 30.

HOPKINTON, Mass. (AP) -- Data storage systems maker EMC Corp. said Thursday it has extended its cash tender offer for the outstanding shares of San Diego-based Zip drive maker Iomega Corp. until May 30.

EMC is offering $3.85 per share in cash to Iomega shareholders. The offer, which began on April 24, was originally schedule to expire on Wednesday.

The company said the offer was extended to allow the European Commission time to complete its review process, which is necessary to complete the deal.

EMC agreed to acquire Iomega for $213 million to expand its offerings targeting small businesses and consumers. The price represented a 20 percent increase over EMC's initial bid of $178 million, or $3.25 per share.

As of the close of business on Wednesday, 42.8 million Iomega shares had been validly tendered and not withdrawn, representing about 78 percent of the company's outstanding stock.