Seagate in buyout talks

Hard drive storage specialist Seagate has confirmed that it is in takes with investors to go private in a deal rumoured to value the company at $7.55 billion - a significant jump over its current market cap.

Although the firm has declined to provide details, stating that the talks are private, two unnamed sources have independently told Reuters that private equity firm TPG Capital is likely to be the money behind the deal.

Another source, again wishing to remain anonymous, told Bloomberg that both TPG Capital and KKR & Co were part of the talks, and that an offer of $16 per share - a total valuation of $7.55 billion - was on the table.

Rumours of the talks sent Seagate's shares skyrocketing yesterday, with the company enjoying a 22 per cent boost as investors jump on the bandwagon ahead of any possible buyout deal.

If Bloomberg's source proves accurate, the offer represents a sigificant premium on the company's market cap of $6 billion, indicating that the board of directors at Seagate would be crazy to pass the opportunity up.

With Seagate refusing the confirm anything beyond the fact that talks are taking place, investors in the company will have to sit tight to see if they're about to become extremely wealthy.