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Seagate reportedly turned down takeover bid from Western Digital
File this one under industry-changing mergers that never were -- Bloomberg is reporting that Seagate rejected a takeover bid from rival Western Digital in October, which would have created a hard drive company to dwarf all others. According to "two people with knowledge of the matter," Western Digital was willing to offer as much as ten to fifty percent more than a competing takeover proposal from TPG Capital, which had already put more than $7.5 billion on the table for Seagate. As you might expect, however, the sheer size of the merger was apparently largely responsible for its refusal. Not only would it have created a huge amount of product overlap and likely led to numerous management departures, but it would have almost certainly faced some pretty significant antitrust obstacles. Of course, neither company is actually commenting on the matter itself and, for the time being at least, it looks like Seagate is content with going it alone.
Fujitsu and Toshiba reach agreement on hard drive business deal
It's not exactly a huge surprise at this point, but Fujitsu and Toshiba have announced today that they've signed a memorandum of understanding on the transfer of Fujitsu's hard drive business to Toshiba, and that they plan to conclude a transfer contract "at an early date." To make the transition as smooth as possible, Fujitsu says it'll spinning off all its HDD-related business into a separate company in the interim, which Toshiba will buy an 80 percent stake in and make a Toshiba Group subsidiary. Then, once things are fully transitioned, Toshiba will buy up the remaining 20 percent and make the company a wholly owned subsidiary. Notably absent from today's announcement, however, is any word of a dollar figure, though previous reports had pegged the deal at anywhere from $335 to $447 million. Toshiba also doesn't seem like it'll be resting on its laurels once the deal is complete, saying that it hopes to increase its overall HDD market share 20 percent by the year 2015.
Toshiba said to be nearing deal to buy Fujitsu's hard drive business
Hitachi may be out of the picture (if it was ever actually in the picture to begin with), but it looks like Toshiba is now very close to buying Fujitsu's hard drive business in a deal that's reported to be worth between 30 and 40 billion yen, or anywhere from $335 to $447 million. That would make Toshiba the world's largest supplier of hard drives for laptops and, according to Reuters, it could be all but a done deal by the end of the month, if a supposed meeting between company execs planned for this week goes as expected. The deal wouldn't include Fujitsu's plant in Nagano Prefecture, however, or the hard drive operations of its Yamagata Fujitsu subsidiary -- those would apparently be sold off separately for some extra cash if Fujitsu decides to exit the hard drive business altogether.
