EMC (NYSE: EMC) may have won the bidding war for storage technology company Data Domain (Nasdaq: DDUP), according to the largest institutional shareholder in Data Domain.

Artis Capital Management, which holds nearly 11 percent of Data Domain shares, told Dow Jones Newswires on Tuesday that it did not expect a higher bid from NetApp (Nasdaq: NTAP).

All three companies have major operations in the Triangle.

"Post EMC’s most recent $33.50 offer, we have chosen to reduce our position considerably," Artis Capital Management President Stuart Peterson said.

"Given their limited domestic cash levels relative to EMC and the dilutive effect of an increased stock component, we believe [NetApp] management is unlikely to move their bid higher,” he added.

Artis Capital is a hedge fund.

EMC upped its offer for Data Domain on Monday even as NetApp and Data Domain announced they had received federal government approval for their deal. EMC also says its bid has government approval.

After EMC announced its higher bid, NetApp said it would review its position.