WD were willing to pay 15% more than competitors.
We always think of two companies that could wield superb powers if they merged, right? Seagate and Western Digital was one of them for us, and it was nearly possible too only had Seagate accepted a takeover bid from the US hard drive makers.
According to a report from Bloomberg, Seagate rejected a buyout from Western Digital in October, who was willing to offer upto 15% more than a competing 7.5 billion takeover proposal from TPG Captial.
But the merger would probably had not been a good idea, according to Rodman & Renshaw analyst Ashok Kumar. “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.”
Product overlap may not have been Seagate’s only concern, however, the merger could have also meant numerous head rolls over at the management and probably a lot of antitrust issues between the two companies.