Seagate Ends Talks to Go Private, But Approves $2 Billion Share Repurchase
Seagate today announced its board of directors terminated discussions with private equity firms regarding a going private transaction, principally because it determined that the indications of the valuation range were not in the best interest of the company and its shareholders. As previously announced by Seagate on October 14, 2010, the company had received a preliminary indication of interest regarding a going private transaction and its board of directors was in discussions with that party. Additionally, Seagates board of directors has authorized the company to repurchase up to an additional $2 billion of its outstanding ordinary shares. This new share repurchase authorization continues Seagates commitment to enhancing shareholder value.
We appreciate the interest shown by the private equity firms and our dialogues with them were extensive and thoughtful, said Steve Luczo, Seagate chairman and CEO. However, management and the Board have chosen to cease discussions concerning a private equity-led leveraged buyout. Given the strong debt markets, improving business conditions and other financing options, Seagate has initiated a plan to further optimize its capital structure to maximize shareholder returns.
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