“LA ADQUISICIÓN DE SEAGATE TECHNOLOGY” 1. Why is Seagate undertaking this transaction? Is this necessary to divest the Veritas shares in separate transaction? Porque el mercado estaba menospreciando el valor de sus acciones‚ esto ya que aun cuando Seagate Technology poseía gran parte de VERITAS (155 millones de acciones) sólo aumento en un 25% el valor de sus acciones que es nada si se compara con el 200% que aumentó el de las de VERITAS. En sí no es necesario‚ pero al hacer
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Case 9 & 10 Analysis Seagate Technology Buyout The Hertz Corporation Advanced Corporate Finance MW 2:00-3:15 PM Question 1 On page 1‚ the “value-gap” is two-fold. It signifies an under-valuation of Seagate’s core disk drive operating assets due to unfavorable public market investor preferences. Furthermore‚ the value of the Veritas share price has caused the Veritas stake to far outweigh the value of Seagate’s stand-alone market capitalization. Since Seagate does not own at least 80%
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Seagate Case Study Effective Global Strategic Resourcing Analysis The key to a successful supply chain and its integration with customers and supplies lies in its ability to communicate wants‚ needs‚ and realities. Seagate has taken communication to its highest level by creating visibility at every level of its supply chain. This visibility is the Holy Grail for Seagate because it is a form of communication that breeds trust and transparency throughout every level of its supply chain.
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Re: Seagate Technology 1. Describe the main terms of the Seagate Technology buyout? Why is Seagate undertaking this transaction? Is it necessary to divest the Veritas shares in a separate transaction? What are other alternative ways to create value? The primary contemplated terms would be to sell Seagate’s disk drive mfg assets including $765M in cash to Suez Acquisition Company controlled by Silver Lake Partners. The purchase would be financed by equity put up by Silver Lake and also by an‚
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VALUATION -PROBLEM SOLVING FOR THE CASE STUDY Name Institution Instructor Course Date Question 1 Potential value creation in the transitions: 1. Use of a risk hedging financial contract‚ the swap. 2. Acquisition of an undervalued target. 3. Evading tax liability. The management under the advisory of analyst believe that the company requires to make intensive‚ heavy investments which is not feasible if the Seagate Inc. remains a public company The other capital reorganisations alternatives are
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Seagate Technology Buyout Hard disk drives make up the largest sector of the information storage industry in 1999. The hard disk drive market can be classified into three separate categories‚ desktop‚ enterprise‚ and mobile. The mobile and desktop markets are expected to converge in the long run. While the desktop market represents approximately 58% of the $25 billion total hard disk drive market‚ enterprise margins were nearly double the margins in the desktop sector (10-15%). Since 1997‚ the number
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Seagate Buyout Case Group 5 Heng Qiao Eduardo Pereira Wei Wang Yanan Pei Introduction of the companies Seagate Technology‚ Inc. is one of the world’s largest manufacturers of computer disk drives and related data storage devices with approximately $6.5 billion in annual revenues. In early November 1999‚ Luczo‚ president and CEO of Seagate considered a restructuring proposal with Silver Lake‚ a successful private equity firm that is specified in technology business investing
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megabyte of disk storage has gone done 40% per year from 1980-1995. Seagate believes that in order to stay competitive they must aggressively enhance product offerings and reduce prices. They also believe that in addition to that‚ they need to provide timely introductions and reduce production costs. However‚ the surging global demand in this industry is causing some facilities to run at full capacity very frequently‚ so Seagate needs to tailor its manufacturing strategy for these new products they’re
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“Seagate Buyout” | Case Study Analysis | 1. Why is Seagate undertaking this transaction? Is it necessary to divest the VERITAS shares in a separate transaction? Do the shareholders of VERITAS gain or lose from this transaction? Under the original organizational structure‚ Seagate’s management believed its current stock price is undervalued by the current market and thus not delivering the value to shareholders of Seagate stock. At this time‚ Seagate also held a significant stake in VERITAS
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Seagate Technology* A case (with teaching note) on the role of senior business leaders in driving work/life cultural change. Phyllis Siegel‚ Rutgers the State University of New Jersey The Wharton Work/Life Roundtable A Division of the Wharton Work/Life Integration Project University of Pennsylvania * This research was funded in part by a Sloan Foundation Grant #B1999-76. A note of special gratitude goes to: Alice Campbell‚ Scott Cooper‚ Debbie Hufnagel‚ and Ellen Ernst Kossek for
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