IN BRIEF: Seagate May Be an Acquisition Target – Analysts

Seagate May Be Facing Take Over, Or a Merge with Another Big Player

by Anton Shilov
03/24/2009 | 11:15 PM

The stock of Seagate Technology increased by more than 10% on Tuesday and trade volumes were six times higher than usual. Some analysts believe that this means that Seagate is about to be acquired, or is negotiating with a potential buyer. Perhaps, Seagate is getting ready to merge with another company.

 

“Call options in the disc driver maker exceed normal trading volume by 10 times. Based on heavy trading in June contracts, one idea is Seagate may be considered a takeover candidate,” observers from optionMonster web-site noted.

Potentially, increasing stock may also indicate an incoming merge of Seagate with another company from the sector that involves stock exchange.