Chinese tech firm flirts with Seagate

Could Lenovo be muscling in on US-dominated HDD industry?

By Kelly Fiveash • Get more from this author

Posted in Storage, 28th August 2007 11:54 GMT

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Updated Rumours are circulating in the heady world of hard disk drives (HDDs) that a Chinese tech firm wants to buy Seagate Technology.

The New York Times reported on Saturday that an unnamed Chinese technology company, widely believed to be computer maker Lenovo, had approached Seagate, the world's number one manufacturer of HDDs.

It’s a worry for US authorities who, according to the Times, would see such a deal as a risk to national security by exposing high technology to China.

Seagate CEO William D. Watkins, who declined to name the firm at the centre of the rumours, reportedly said that "the U.S. government is freaking out."

He added that while Seagate, which dominates around 30 per cent of the worldwide HDD market share, was not looking for a buyer, if the price was high enough it would be difficult for shareholders to say no to such an offer.

Shares in the California-based firm are currently trading at $24.89 on the New York Stock Exchange. ®

Update

Seagate has this afternoon squashed rumours of an imminent buy-out from a leading Chinese tech firm.

According to Reuters, Seagate CEO Watkins had been simply discussing the growing interest in HDD technology from companies based in China, Japan and Korea, where working with respective governments, HDD storage had become "a national agenda."

In a statement, Seagate said: "Just to be clear, Seagate has not received such an offer, and we are not trying to sell the company."

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