For those who missed the CC and don't want to listen using the Internet, the replay number is 1-888-203-1112 and the access code is 446155. It's open until October 7th (Friday).
I think the plan is great. We've been yelling for consolidation in the HDD industry as the only way to get better and now we're getting it.
You'll notice the deal sounds simple. I'm told this was done to get on with it. But there are a few questions that I have which I believe they will sort out as time passes.
For one, Maxtor keeps MaxAttach which, as was stated by Cannon in the call, will be competitive with SNAP, yet Brown goes on the Maxtor board. Got to be a conflict here.
I expect this matter to be resolved as time passes. (Lets get the deal done).
Secondly, MKE stays. Has to be for some time. But I believe that will change over the long term. Unless MKE works with Hyundai about there 35% in Maxtor, they currently have no equity position in the deal. As Stitch pointed out, Maxtor wants badly to get to their property in China for lower manufacturing costs. In two years they can be there. (Lets get the deal done and sort it out latter)
Thirdly, as stated, Hyundai still holds 35% of Maxtor. Hyundai has wanted out for some time. I expect changes here too. (Lets get the deal done)
The best news is that Cannon runs the new company.
As I posted earlier, look for WDC to come out of all this on the plus side, cause 1+1 never equals 2 on these deals.
I'm stoked. I'm back into MXTR and WDC and will stay in RDRT while the TDK/SAE issue continues to get sorted out.
By the way, I'm told TDK is using the old R&D 3" wafer fab facility in Northern Japan to get wafers out. Also, I'm told no one is getting TDK/SAE heads in anywhere near the quantities need for the December quarter drive shipments. Wafers are coming out of Nagoyo but a reduced cycle qual will be required at the head level to be certain their back to the point where they prior to the flood. But, at that point they were having serious problems with sulfur contamination in the wafers causing real problems with the 20 GB/platter heads.
Regards,
LT |
