A Fox Called Kay (kayfox) wrote,
A Fox Called Kay

Seagate is buying Maxtor...

Seagate says to buy Maxtor for $1.9 bln in stock

Wed Dec 21, 2005 05:11 AM ET
NEW YORK, Dec 21 (Reuters) - Seagate Technology (STX.N: Quote, Profile, Research) on Wednesday said it would buy rival computer disk-drive maker Maxtor Corp. (MXO.N: Quote, Profile, Research) for $1.9 billion in stock.

Under terms of the deal, which is expected to be completed in the second half of 2006, Maxtor shareholders will receive 0.37 shares of Seagate common stock for each Maxtor share they own. Seagate shareholders will own about 84 percent and Maxtor shareholders will own about 16 percent of the new combined company.

The combination is expected to add 10 to 20 percent to Seagate's cash earnings per share after the first full year of joint operations, Seagate said in a release.

Seagate said its executive management team will continue to serve in their current roles and the combined company will retain the Seagate name.

© Reuters 2005. All Rights Reserved.

  • Post a new comment


    default userpic

    Your reply will be screened

    Your IP address will be recorded 

    When you submit the form an invisible reCAPTCHA check will be performed.
    You must follow the Privacy Policy and Google Terms of use.