Company Seagate Technology turned down a takeover bid from another leading hard drive manufacturer, western digital. The reason was given as the inconsistency of such a transaction with the interests of shareholders.
In addition, such a deal may not please all sorts of antitrust organizations. also in Seagate they considered that in the event of a takeover, the company would face serious personnel changes, with mandatory subsequent layoffs - after all, a lot of the company's products overlap each other and it will be necessary to abandon the production of some of them.
All this obviously will not please the shareholders, and therefore it was decided to refuse. As a result - the value of the company's shares immediately increased by 7 percent - apparently the shareholders appreciated the care for them.
It is known that western digital offered about $8 billion for Seagate, the market value of which is estimated at 6.9 billion.