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Western Digital Tries To Buy Seagate Despite Size Difference

Western Digital Tries To Buy Seagate Despite Size Difference

One of the main reasons that the deal fell was speculation that Western Digital would have faced antitrust obstacles and may have resulted in management departures.

Insiders claim that Western Digital was willing to pay 10 percent to 50 percent more than TPG Capital who made an offer in October to buy the company.

The proposal was a bad idea, said Ashok Kumar, an analyst at Rodman & Renshaw LLC in New York. “I’m not sure how that would serve Seagate’s shareholders,” he said. “There’s way too much product overlap, and I’m not sure the premium would be meaningful enough to make it worth it. I think they have to make a go of it on their own.”

Seagate, has a market value of about $6.9 billion while Western Digital is only valued at $8 billion.