FWIW, from an article on EMC:
<<In general, demand for storage capacity is accelerating dramatically as enterprises generate more and more data, and
capacity-consuming multimedia like audio and video become mainstream components of that data. A recent Business Week
story quoted CEO Michael Ruettgers as saying "A lot of customers have been talking about their plans to double their storage
requirements this year.">>
On Maxtor:
If they (Hyundai) are selling everything in the IPO, they are selling for about Maxtor's revenues in the last quarter, I think ($575 million, according to the article, revenues were around $550, I think). I wonder what percentage they are going to try to get John Q. Public to buy?
Z talked months ago about Hyundai trying to shop Maxtor around. I guess no companies wanted to pay the price. Easier to sell to the public, I suppose. Puts a slightly different spin on Seagate's recent hiring of one of their VPs in charge of new product development. I would at least guess that if he knew that they were going to go public, he might not have been eager to leave, as VPs frequently get nice option packages when these things happen (just speculation, obviously).
As a publicly traded company, Maxtor will have easier access to the capital markets than Hyundai does, if they keep their momentum and market share intact, probably via that favored mode of raising capital by drive companies--a convertible offering. Or perhaps they'll do a Reg S offering, if they want and need cash fast, at least once the clients who buy the offering have a chance to flip their shares for a profit.
Does anyone know when this offering will occur? |
