EXCLUSIVE-EMC plans to raise bid for Data Domain-sources

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.

Data Domain's board of directors last week advised shareholders to accept NetApp's cash-and-stock bid, saying it offers better value. The board is expected to make a formal recommendation on EMC's bid on June 16.

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.

All the sources requested anonymity because no final decisions have been made. The three companies declined comment on the bids.

Investors already are expecting offers to go up in the bidding war, which is rare in the tech sector. Shares of Data Domain have been trading around $33, and rose as much as 3.3 percent to $34.35 in Friday trading on the Nasdaq.

(Reporting by Anupreeta Das and Jim Finkle; Editing by Tiffany Wu)

((anupreeta.das@thomsonreuters.com; +1 646-223-6224))

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