Friday, February 22, 2013

Seagate: Report TPG, KKR Bid $16/Shr; Offer Worth $7.55 Bln

The private equity firms TPG and KKR are in talks to buy Seagate (STX) for about $16 a share, according to Bloomberg, which cited “people with direct knowledge of the discussions.” The disk-drive maker yesterday disclosed that it was hold talks on going private, but gave no other details. The deal would be worth about $7.55 billion.

The story says the buyout firms may seek additional partners, possibly including Bain Capital.

Bloomberg last month had reported that talks with TPG and Silver Lake to go private had broken down, but that TPG has restarted discussions. The story today says Silver Lake is not involved in the new discussions.

This morning STX is up $2.40, or 18.9%, to $15.09.

Shares or rival Western Digital (WDC) are up $2.31, or 7.8%, to $31.80.

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