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Technology Stocks : Seagate Technology - Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Lucinos who wrote (1121)	9/3/1999 9:34:00 AM
From: Alan Casey	Respond to of 1989

Following article of minor interest unless it might indicate that SEG will eventually do something significant with its now wholly owned sub. NEW YORK (CNNfn) - Disk drive maker Seagate Technologies Inc. Friday announced a plan to buy up all the outstanding shares of its subsidiary, Seagate Software Inc., a move that will cost the company $216 million in charges against future earnings. Seagate Software shareholders will each receive one Seagate Technology share for each share or option they currently hold. Seagate anticipates issuing an additional 8 million shares to implement the plan, with the exchange ratio based on the market price of both companies. The company didn't elaborate on when the exchange will take place or to which quarter the charge will apply. Seagate (SEG)'s shares Thursday closed up 1/8 at 34. The plan will allow Seagate to extricate itself from the software side of its business and focus more on its hardware business. Seagate Software's assets -- which consist of its information management group business and some shares it received when it sold its network and storage business to Veritas Software Corp. (VTRS) -- will be transferred to a new wholly owned subsidiary. Current and future employees will receive stock options based on the future performance of Seagate's information group management business -- a way to provide them with additional incentive to work on that area of the business, the company said. Seagate, a maker of storage drives for computers, has been hurt by weak sales and falling prices as global computer prices have declined in the face of stiff competition. The Scotts Valley, Calif.-based company reported income of $69 million, or 30 cents a share in its fiscal fourth quarter, slightly less than expected. Last week Seagate said it will cut 1,600 positions among its Singapore factories -- part of the same restructuring plan. The company currently has about 15,000 workers in Singapore.