Hitachi Limited Eyeing IPO Bid

By Arnab Ghosh, Gaea News Network
Thursday, September 2, 2010

TOKYO, JAPAN ( Hitachi Limited, a Japanese technology giant which is popular for its various types of hard drives worldwide, is in plans for coming up with an IPO of the hard drive unit it has. The IPO may come by the end of 2010, as it has been reported. Hitachi Global Storage Technologies, its hard drive manufacturing segment is rated as the third largest hard drive maker of the world nowadays. The valuation of the farm can stand at 3 billion, as industry veterans suggest. The company competes with Western Digital Corp and Seagate Technology Plc, two of its major rivals. Reportedly, the bankers are in discussion with the company regarding the issue and things could get finalized within a few months. Goldman Sachs Group Inc may act as the underwriter.

There is a buzz in the industry that Hitachi Limited may also sell the hard drive unit. The hard drives made by the company are used in a number of branded desktops and laptops all over the world. The company also manufactures external storage devices. The company is also eying feasible acquisitions in IT segment mainly in the USA and Europe. A spokesman from Hitachi said that the company is not sure about selling the hard drive unit as yet. However, he admitted that the company is considering the various possibilities.

Raising an IPO will help Hitachi Limited financially and it can do well by shedding certain segments in its business. HGST is now led by Chief Executive Officer and President Steve Milligan. He used to be the former CFO of Western Digital Corp.

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