IBM Message Board - Msg: 17552317

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Technology Stocks : IBM

IBM 309.27

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Nov 10 3:59 PM EST

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To: Dave Lyall who started this subject	6/3/2002 9:34:23 PM
From: art slott	Read Replies (2) of 8218

Hitachi to Pay IBM $2.05 Billion By THE ASSOCIATED PRESS Filed at 8:52 p.m. ET TOKYO (AP) -- Japanese electronics maker Hitachi Ltd. said Tuesday it will pay technology giant IBM Corp. $2.05 billion for the bulk of IBM's hard drive assets, which the companies aim to combine in a joint venture. After announcing the deal in April, the two companies released additional terms Tuesday, naming Hitachi's current managing director Jun Naruse as the new venture's chief executive, said Hitachi spokesman Atsushi Konno. Hitachi will initially own 70 percent of the yet-unnamed company and will make a series of fixed payments to IBM before assuming full ownership after three years. The companies said in April that the joint venture will be based at IBM's disk development and engineering offices in San Jose, Calif. Both companies will contribute executives and employees. The new company combines plants and intellectual property along with some 24,000 employees -- about 18,000 from IBM and 6,000 from Hitachi -- with joint manufacturing operations at 11 plants worldwide. With both companies purchasing much of their hard drive supplies from the joint venture, Hitachi estimates the new company will deliver $5 billion in sales in fiscal year 2003, with a sales target of $7 billion by fiscal year 2006. The deal is expected to close before the year's end, pending regulatory approval.

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