Summary
Seagate Technology plc (STX) has filed an 8-K report on May 23, 2011, to disclose a significant development regarding its pending acquisition of certain assets from Samsung Electronics Co., Ltd. Specifically, Seagate announced that it received a second request for additional information from the U.S. Federal Trade Commission (FTC) on May 20, 2011. This second request, issued under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, effectively extends the waiting period for the transaction's regulatory approval. This development indicates a more thorough review by the FTC into the proposed acquisition. While Seagate states it is cooperating fully with the FTC and is in the process of gathering the necessary information, the extended review period introduces a degree of uncertainty for investors regarding the timeline and ultimate completion of the deal. The company is working towards substantial compliance with the second request, after which a 30-day waiting period will commence, unless otherwise agreed upon or terminated by the FTC.
Key Highlights
- 1Seagate Technology plc received a second request for information from the U.S. Federal Trade Commission (FTC) on May 20, 2011.
- 2The second request pertains to Seagate's pending acquisition of certain assets from Samsung Electronics Co., Ltd. and Samsung's proposed acquisition of Seagate voting securities.
- 3This FTC second request extends the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
- 4The waiting period will now extend until 30 days after Seagate substantially complies with the second request, unless extended voluntarily or terminated by the FTC.
- 5Seagate is cooperating with the FTC and is in the process of gathering information to respond to the second request.
- 6The transaction was originally based on an Asset Purchase Agreement entered into on April 19, 2011.