Seagate Not Going Private After All
Looks like it’s a buyback, not a buyout for Seagate.
The hard drive manufacturer today said it’s ended talks around that “going private transaction” it announced back in October, opting instead to begin a $2 billion buyback of its stock. Seems Seagate found it couldn’t command a price “in the best interest of the company and its shareholders” and was better off staying its present course.
“We appreciate the interest shown by the private equity firms and our dialogues with them were extensive and thoughtful,” Seagate CEO Steve Luczo said in a statement. “However, management and the Board have chosen to cease discussions concerning a private equity-led leveraged buyout. Given the strong debt markets, improving business conditions and other financing options, Seagate has initiated a plan to further optimize its capital structure to maximize shareholder returns.”
Sounds wonderful, but the company’s shareholders aren’t buying it. Seagate’s stock is down 6.2 percent at $13 as I write this.