EXCLUSIVE-UPDATE 1-EMC plans to raise Data Domain bid-sources

* EMC to raise Data Domain bid to compete against NetApp

* EMC has room to go to $34-$35 a share - sources

* EMC likely to act just before Data Domain investor vote

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By Jim Finkle and Anupreeta Das

BOSTON/NEW YORK, June 12 (Reuters) - EMC Corp (EMC.N: Quote, Profile, Research) intends to raise its bid for Data Domain Inc (DDUP.O: Quote, Profile, Research) to thwart rival suitor NetApp Inc (NTAP.O: Quote, Profile, Research), and could offer as much as $35 per share, sources familiar with the matter said.

The top maker of data storage equipment, EMC, has already offered $30 a share, or $1.8 billion cash, for Data Domain but the specialty storage technology company chose NetApp after it raised its $25-a-share offer to match EMC's price.

EMC's strategy, according to one of the sources who has knowledge of its thinking, is to either win Data Domain, or at least drive the price high enough to make the acquisition very expensive for NetApp and weaken the smaller rival's finances.