And then there is WDC/Sandisk.
Western Digital: Toshiba Bid Would Be ‘Upside,’ Not ‘Necessary,’ Says Guggenheim
Western Digital stock is on the rise following word it may pitch in more money for a deal to buy partner Toshiba's portion of their NAND flash joint venture. Guggenheim says a deal is not necessary for Western, but would be "upside."
By Tiernan Ray
June 13, 2017 7:13 a.m. ET
Western Digital ( WDC) shares are up $1, or 1.2%, at $87.68, in early trading, as the Street continues to digest the latest in the back-and-forth drama between it and Toshiba ( 6502JP), which have been wrestling for months over Toshiba’s planned sale of the NAND flash joint venture in which they both hold an interest.
The latest, on Sunday, from Nikkei Asian Review, was that Western is considering “sweetening” its offer to Toshiba, to bring the purchase price of a consortium including Western to “around 2 trillion yen,” or $18.1 billion, the paper reports, without citing any sources. This latest bid comes
That news helped to lift Western shares slightly yesterday, and the response from a few individuals today fairly positive.
J.P. Morgan’s Rod Hall writes that “we continue to believe that WDC's consent rights and existing partner status with Toshiba make them the preferred partner and that most of the back and forth has been driven by Toshiba trying to create leverage to get a better deal.
Also today, the stock has gotten one positive stock initiation this morning, from Aegis Capital’s Ananda Baruah, who started coverage of Western shares at a Buy, with a $130 price target, writing there’s “long-term appreciation” above even that target, according to a summary provided by TheFlyontheWall.
continues at barrons.com |
