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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Z Analyzer who wrote (8738)	9/21/2000 1:01:29 AM
From: La Traguhs	Respond to of 9256

Even Seagate will be affected but to a much lessor degree. They still get around 5 to 10% of their heads from TDK. I think the only one not using TDK heads is IBM, but if heads were their only problems they would be considered in great shape. As I understand it, the previous Quantum/Maxtor discussions were derailed by MKE, but in this go around, stories have it that MKE would buy up the approximately 20% of Maxtor owned by Hyundai. Hyundai gets out of the drive business and MKE gets an equity position in the new entity, which they don't have with Quantum now. So now the only hang up appears to be the TDK issue, but that is my guess. I wouldn't want to be Cannon or Brown saying, "Hey, we have added to the consolidation that the Street has been clamoring for by combining our two great companies, and by the way, we can't ship drives 'cause we aint got heads." I don't think that would fly. Since I'd like to see it happen, for the sake of the industry at large, I would hope it just delays but doesn't nix the deal. In response to Sarmid's comments about WDC, I think they could be a beneficiary of any HHD/Maxtor deal, since the box builders hate to see their ability to work everyone against one another dwindle. They could shore up WD with additional share to help give them parity with Seagate at 11 million units plus per quarter and a HDD/Maxtor at around 15 million per quarter (versus WD at 5 million plus per quarter) But I think we have to get through the TDK issue first. Regards, LT Regards, LT