Is Seagate a takeover target? Yes, says "one investment professional" in Business Week. Of course the article gets some things wrong, like saying that SEG owns "3.8 million shares in specialty clothes retailer Gadzooks Inc". Cute. Where have all the editors gone?
Seagate might be courted -- Business Week
NEW YORK, Nov 11 (Reuters) - Seagate Technology Inc. (NYSE:SEG -
news), the largest independent maker of computer disk drives, may be
poised to be a takeover target of not just one but two big companies,
according to an article in the Nov. 22 issue of Business Week.
Acoording to the magazine, one investment professional, who has been
accumulating shares, said Japan's Fujitsu has expressed interest in Seagate
and is discussing a buy for at least $55 a share.
Business Week, said the shareholder believes a move by Fujitsu will trigger and offer from International Business
Machines Corp. (NYSE:IBM - news).
Vince Carino, president of Brookhaven Capital Management in Palo Alto, Calif. told the magazine that Seagate's cash
and marketable securities alone are worth $10.2 billion, or $49 a share. The securities include 60 million shares in
Veritas Software (NasdaqNM:VRTS - news), 3.8 million shares in specialty clothes retailer Gadzooks Inc (NasdaqNM:GADZ - news), and 6.4 million shares in SanDisk. |
