So the strategy is pretty clear. They buy back 33% of the float at the average price of $14 and add debt. Meanwhile they accumulate cash, because they have positive cash flow. This makes buy out at $22/sh. possible, for the same total amount of money as the old $17/sh. buy out. The question is not if, the question is now when.
Actually same exact bidders as before. They only disagreed on price, not on principle. So now the total price of purchase is the same as they wanted to pay before, but the price per share is what Seagate wants. Brilliant! It all comes down to this: the purchasers just bought 1/3 of all shares at $14/sh. and will buy the rest 2/3 at let's say $20/sh. $20/sh. buyout sounds great now when the price is $13. Will be approved by the board and by the shareholders. Way betther than $16.5-18/sh. that was intertained before, but essentially it is equivalent to the $18/sh. of pre-buyback shares.
Also note that now when there are 30% less shares, profit per share will be amplified by 50%. What used to be $1/sh. will now be recorded as $1.50/sh.
I think we're going to see buyout talks resume in 90 days.