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To: Sarmad Y. Hermiz who wrote (104250)	5/28/2000 12:54:00 AM
From: GST	Read Replies (1) \| Respond to of 164684

Sarmad -- Are we not due for at least some kind of bear market bounce?

To: Sarmad Y. Hermiz who wrote (104250)	5/28/2000 12:58:00 PM
From: H James Morris	Respond to of 164684

Sarmad, thanks I checked out Seagate, and your right...its not now the company it used to be. This deal with Vrts is too complicated for me to understand. >Scotts Valley, California, May 25 (Bloomberg) -- Seagate Technology Inc., the No. 1 maker of computer disk drives, said it will close two of its three disk plants and fire about 1,200 workers, as part of a previously announced cutback, because of overcapacity and prices. The company said it will take a $35 million charge in the current quarter for the closings. About 621 workers in its Anaheim, California, plant will be affected, and about 591 workers in a sister facility in Mexicali, Mexico, will be fired. The Anaheim plant will be closed by August and some workers there may be reassigned to other jobs, the company said. Seagate, which intends to go private, has been looking for ways to cut costs and said in September that it planned to eliminate 8,000 jobs, or 10 percent of its workers, over nine months to streamline operations. Not including the planned cuts, Seagate had about 61,360 workers worldwide at the end of March, down from 106,000 in July 1998. ``This is a difficult decision, but our internal capacity was exceeding demand and market prices were lower than our internal cost,'' said Phil Montero, a Seagate spokesman. Disk production will be consolidated at Seagate's Limavady, Ireland, plant, moving virtually all of its disk drive and drive parts production outside the U.S. Fewer Disks Needed Seagate makes disk drives that store data software programs and Internet sites on computers, as well as the disks that spin rapidly inside them. Technological advances that allow more data to be stored on the disks means fewer of them are need in each drive. Competing disk makers with foreign plants and cheaper labor have been able to make them at a lower cost. In August, San Jose, California-based Komag Inc., the No. 1 maker of the disks, shifted its manufacturing to Malaysia from the U.S. to be more competitive. Montero said that after the plants are closed, Seagate probably will buy disks from another company, though he declined to elaborate. He said that wouldn't happen until Seagate's need for the disks exceeded its capacity to make them. Seagate is being taken private in a $20 billion transaction by an investor group led by California venture capitalist Roger McNamee and Texas financier David Bonderman. Shares of the Scotts Valley, California-based company fell 3/4 to 51 1/2 on the New York Stock Exchange. May/25/2000 20:49 ET