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Seagate Technology Public Limited Company Message Board

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  • SA1212 SA1212 Dec 3, 2010 12:57 PM Flag

    If the board rejected a $22 offer.....

    I think the answer is pretty simple really. TPG was ready to buy, but WDC outbid them. STX management didn't want to sell to WDC, because there is nothing there for them (the management), while TPG was a golden deal for them (the management). But now they couldn't accept the TPG deal, because with the WDC bid that would CLEARLY and PROVABLY be not in the shareholders' interest, but only in the management interest. So they were forced to cancel the whole thing, instead of minding the shareholder insterest and selling to WDC.

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    • "VI think the answer is pretty simple really. TPG was ready to buy, but WDC outbid them. STX management didn't want to sell to WDC, because there is nothing there for them (the management), while TPG was a golden deal for them (the management). But now they couldn't accept the TPG deal, because with the WDC bid that would CLEARLY and PROVABLY be not in the shareholders' interest, but only in the management interest. So they were forced to cancel the whole thing, instead of minding the shareholder insterest and selling to WDC"

      Congrats, throw in the fact that several major STX shareholders were not very happy about another management heist and you have come closer the the truth than 99% of the morons who have posted their BS on this matter!

      • 1 Reply to v1kes_won
      • Exactly what I've been saying.

        Of course procurman said, the day before STX announced that they had pulled the plug on the privatization deal the following:

        "More importantly, if management walks away from a deal because it wasn't at a high enough price, thats a good thing, If they take a deal, you call them thieves. Luczo will do the right thing just like he always has...plus he owns 5 million shares so he is incented to do the right thing."

        One wonders whether Luczo and management actually made this call uder the circumstances but I'm sure that he feels better about himself thinking that he did!

    • WDC was ready to offer more and if there was a specific offer it would need to be disclosed per Irish law. No firm offer was ever tabled by either of them

      • 1 Reply to bufflomike67
      • Just the notion that WDC is ready to outbid TPG was enough, so that STX management got scared away from selling cheap to TPG. Going private on a cheap is the best for the management and the worst for shareholders. Selling to a competitor is the best for shareholders, but not good for management, because they will have to leave their positions with the company. Antitrust issues are not very clear -- there are other hard drive manufacturers besides WDC and STX. And if we think of storage in general = SSD or HD, then the competitor space is huge. Also WDC knows about antitrust as well, and yet they were willing to approach. I think WDC just wanted to spoil the TPG takeover.

 
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