- Associated Press - Thursday, October 14, 2010

SCOTTS VALLEY, CALIF. (AP) - Disk drive and storage maker Seagate Technology PLC says it is in discussions with an unnamed party that is interested in taking the company private.

Its shares shot up $2.65, or 21 percent, to $15.34 in after-hours trading. The stock had finished regular trading down 6 cents at $12.69.

Seagate said Thursday its board is evaluating the “indication of interest regarding a going-private transaction” and other strategic alternatives. It stressed that there is no guarantee that it will receive a formal offer or complete a deal.

The company, which was founded in 1979 and is incorporated in Ireland but operates out of Scotts Valley, says it has retained Morgan Stanley & Co. and Perella Weinberg Partners LP to provide financial advice, and Wilson Sonsini Goodrich & Rosati and Arthur Cox as legal counsel.

If Seagate does go private, it won’t be the first time. The company was bought for $1.7 billion in 2000 and taken private by a group of investors that included Texas Pacific Group, August Capital and Silver Lake Partners, a fund formed by current Seagate chief executive, Steve Luczo.

That happened just as the high-tech bubble burst, however. The deal was undone in late 2002 when Seagate raised $870 million in an initial public offering _ the biggest high-tech IPO that year.

In a July filing with the Securities and Exchange Commission, Seagate said it had 52,600 employees, nearly 86 percent of whom work in Asia.

LOAD COMMENTS ()

 

Click to Read More

Click to Hide