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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (10682)	7/26/2003 8:56:46 AM
From: Sarmad Y. Hermiz	Respond to of 11057

>> They want better control of their destiny by having some captive capacity in this important technology. But they don't seek 100%. Sam, This is the exact issue that riled the analysts. What are they going to do with the excess fab capacity ? (beyond what is required for 50%). This issue is very minor, yet it is what allowed these hostile analysts to down-grade wdc. If Matt said he shutter it, the question is "why did you bid so high for it"? and how/why did you promise to re-hire 600 of 875 people ? If he says they'll get into the merchant biz, then the question is "how do you preserve those precious supplier relationships"? How do you claim to value supplier relationships, when you're getting ready to steal their customer (Maxtor) ? By the way, in 2001, Maxtor was a larger customer to Readrite than WDC ( approx 45% vs 39%). The answer depends on having a complete plan, which will come when they have possession of the plant and see what they have. I think then the advantage of the purchase will be clear, and we'll be sailing on blue skies once again. Sarmad