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ADIC Courts Overland

Tape library rivals Advanced Digital Information Corp. (Nasdaq: ADIC) and Overland Storage Inc. (Nasdaq: OVRL) are dating, and it sounds as if at least one side is getting serious.

ADIC has gobbled up nearly $10 million in Overland stock since August 4, giving it 9.28 percent of the companys shares. The two discussed merger talks as recently as Thursday, according to an SEC statement filed by ADIC today.

According to the filing, ADIC met with Overland CEO Chris Calisi last January, and they signed a confidentiality letter to consider a possible transaction. ADIC reps met with Calisi again Thursday “to inform him of the purchase of the shares” -- in case he didn’t know -- and “to discuss a possible business combination.” The filing also said there are no contracts or agreements in place between the two.

The filing said ADIC considers Overland a good investment opportunity “as well as a possible opportunity to facilitate strategic consolidation within the data-storage industry.”

Neither company had much to add today. “There’s no master plan,” ADIC corporate marketing director Steve Whitner said when queried about a pending acquisition.

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