UPDATE 2-Seagate confirms talks to go private

* Seagate says received indication of interest

* Would be one of biggest leveraged buyouts of year

* Seagate shares up over 20 percent after hours
(Adds analyst comment, adds details, updates shares)

LOS ANGELES, Oct 14 (BestGrowthStock) – Seagate Technology Plc
(STX.O: ) shares surged over 20 percent after the hard-drive
manufacturer said on Thursday it was approached by another
company interested in taking it private.

The hard drive manufacturer also said it retained Morgan
Stanley & Co Inc and Perella Weinberg Partners LP to provide
financial advice as it explores the possibility of going
private.

Seagate’s arch rival Western Digital Corp (WDC.N: ) saw its
shares rise 8.9 percent after-hours.

Last month, TPG Capital LP and Silver Lake held early stage
talks about buying Seagate, but it then appeared unlikely to
result in a deal, a source familiar with the situation said at
the time.

Kaushik Roy, an analyst with Wedbush Securities, said a
private equity firm could be interested in Seagate to wait out
the downturn in hard-drive demand.

“The weakness in the stock is in end-demand and market
related, it’s not that the company is mis-executing. So private
equity is looking at it and saying, geez, these are cheap
stocks.”

Seagate shares had been trading at or below six times its
price to earnings ratio, compared with 10 to 14 times for other
technology stocks, he said.

With market capitalization of about $6 billion today,
Seagate is worth less than a third the approximately $20
billion private equity firm Silver Lake Partners paid to take
it private for the first time in 2000.

Seagate, the top hard-drive manufacturer by revenue,
reentered the public market in 2002.

If a deal to take Seagate private is clinched, it would be
one of the biggest leveraged buyouts of the year.

Trading in Seagate shares was temporarily halted following
the announcement, but after it resumed the company’s shares
spiked to $15.33 in after hours trading. The shares of rival
Western Digital Corp were up 8.9 percent at $32.10 in
after-hours trading.
(Reporting by Alex Dobuzinskis; editing by Andre Grenon)

UPDATE 2-Seagate confirms talks to go private