|04:53 STX Seagate Tech reaches $1.9 bln deal to buy rival Maxtor - WSJ (19.60 ) |
According to the Wall Street Journal, Seagate Technology (STX) has agreed to pay $1.9 bln in stock to buy rival Maxtor (MXO, 4.52), people familiar with the matter said. Under the deal, expected to be announced today, Seagate plans to swap 0.37 of a Seagate share for each share of Maxtor, these people said. Boards of the two companies yesterday approved the transaction, which must be approved by shareholders of both companies, they added. The exchange ratio indicates a current value to Maxtor holders of about $7.25 a share, a 60% premium above yesterday's closing price of Maxtor shares.