Seagate who were apparently on sale have turned down the takeover deal from its competitor, Western Digital. Sources have told Bloomberg that both companies were in talks after the discussion ended with TPG Capital. Western Digital reportedly was willing to offer 10 to 50 percent more than TPG, which is said to be over $7.5 billion.
Two reasons the deal could not be brokered was that the deal would have faced antitrust issues and also resulted in resignation from the management.
Ashok Kumar, an analyst at Rodman & Renshaw LLC says “how that [this deal] would serve Seagate’s shareholders…there’s way too much product overlap, and I’m not sure the premium would be meaningful enough to make it worth it. I think they have to make a go of it on their own.”
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