<%BANNER[top_768x90]%>
<%BANNER[banner_468x60_h]%>
<%BANNER[article]%>

News

<%BANNER[fp_160x600_r_1]%>

The chief executive of Seagate Technology, the world’s largest maker of hard disk drives (HDDs), said in an interview that a “Chinese technology company” approached the maker of hard drives with a proposal to acquire the U.S.-based storage solutions maker. The disclosure not only emphasizes intentions of China-based manufacturers to take over high-tech companies, but also causes concerns among USA government officials.

“Seagate is not for sale… But if a high enough premium was offered to shareholders it would be difficult to stop,” William D. Watkins, the head of of Seagate Technology, is reported to have indicated in an interview with the New York Times news-paper.

Seagate’s current market capitalization is about $13.5 billion, therefore, the undisclosed China-based company would have to spend $16 - $17 billion to acquire the world’s No. 1 maker of hard drives. There are not a lot of China-based technology companies that could be interested in Seagate, though, Legend Group (Lenovo) is the one known for its rather aggressive acquisition strategy.

While hard disk drives do not fall under a list of export-controlled technologies, the attempted purchase of an American disk drive company would require a security review by the federal government, the news-paper cites U.S. government representatives as saying. The U.S. officials warn about possibilities to transfer information from hard drives to third parties, including Chinese intelligent services.

With a booming economy and $1.33 trillion in foreign-exchange reserves, Chinese companies are in a position to acquire various companies, including USA-based technology giants like Seagate Technology. However, the U.S. government is cautious about transferring high-tech companies and their developments overseas. Nevertheless, the acquisition intentions cannot be openly blocked by the country so not to harm relationships with China. On the other hand, the Chinese government would also not like to confront with the USA authorities.

“I do not think anyone in the U.S. wants the Chinese to have access to the controller chips for a disk drive. One never knows what the Chinese could do to instrument the drive,” said an industry executive who participates in classified government advisory groups.

<%BANNER[banner_468x60_f]%>

Related news

Discussion

<%BANNER[fp_160x600_r_2]%>
Comments currently: 2
Discussion started: 08/28/07 05:26:55 AM
Latest comment: 08/28/07 07:16:26 AM

[1-2]

1. 
Sounds like an absolutely horrible idea, isn't it bad enough that most the of the electronics are produced in China? If they actually owned the company they could streamline their crappiness.
[Posted by: System48 | Date: 08/28/07 05:26:55 AM]

2. 
As a seagate employee, I would not read too much into this ........
[Posted by: texty | Date: 08/28/07 07:16:26 AM]

[1-2]

You must log in to add comments.

Forgot password? Registration

remember me



Latest News

Thursday, October 9, 2008

4:50 pm | Consumer Electronics Devices Set to Get Wi-Fi Support – Analysts. Shipments of Consumer Electronics Devices with Wi-Fi to Reach 1 Billion by 2012, Says In-Stat

3:04 pm | Asustek Reveals Eee PC Aimed at Demanding End-Users. Asus Eee PC S101 Debuts, Show Style and Higher Price

11:56 am | Micron Plans Layoffs Amid Rumoured Plans to Acquire Qimonda. Micron Technology to Restructure Memory Operations

Wednesday, October 8, 2008

4:39 pm | Nvidia’s Partners Reluctant to Adopt New Flavour of a High-End Chip. Graphics Card Makers Hesitant to Produce GeForce GTX 260-216

11:15 am | Intel Sells Off Rackmount Server Operations to Kontron. Kontron Acquires Rackmount Server Business from Intel

7:34 am | Microsoft Preps External Blu-Ray Disc Optical Drive for Xbox 360. Microsoft Has Blu-Ray Drive for Xbox 360 Ready, Release Date Under Consideration

3:46 am | AMD Plans to Produce ATI Graphics Processor at The Foundry Company. The Foundry Company to Seek for Non-CPU Customers