UPDATE 3-EMC raises offer for Data Domain to $2.4 bln

* EMC raises Data Domain bid by 12 pct to $33.50/share

* Values Data Domain at $2.4 bln

* EMC, NetApp win U.S. antitrust approval for bids

* Data Domain shares rise 2.7 pct, NetApp falls 2.5 pct (Adds NetApp statement, analysts' comments)

By Jim Finkle

BOSTON, July 6 (Reuters) - EMC Corp (EMC.N) increased its offer for Data Domain Inc (DDUP.O) by 12 percent, valuing the specialty storage maker at $2.4 billion and raising the stakes in a bidding war against rival NetApp Inc. (NTAP.O).

The move drove Data Domain shares up 2.3 percent to $33.97 on the Nasdaq on Monday afternoon, above EMC's new $33.50-per-share bid, suggesting that investors expect NetApp to respond with a higher offer.

Analysts say EMC appears to have the edge in the battle because it has a stronger balance sheet and its bid is all in cash, whereas NetApp's $30-per-share offer includes some stock. Issuing new stock would dilute NetApp's per-share profit, making it tougher for the smaller company to match EMC's bid.

"The end game is that NetApp is probably not going to win," said Jefferies and Co analyst Bill Choi.