标题: Tsinghua Backs Out of Investing in Western Digital [打印本页] 作者: choi 时间: 2-24-2016 11:32 标题: Tsinghua Backs Out of Investing in Western Digital 本帖最后由 choi 于 2-24-2016 11:42 编辑
Don Clark, William Mauldin and Eva Dou, Tech Tie-Up Loses Chinese Investor. Wall Street Journal, Feb 24, 2016.
Quote:
"Western Digital Corp said a Chinese company backed out of a $3.78 billion deal to invest in the disk-drive maker, citing a decision by US authorities [CFIUS] to invest the transaction on national security grounds. * * * Western Digital's shares slid 7% on the news.
"Unisplendor Corp, a unit of China's Tsinghua Unigroup Ltd, terminated a plan for a subsidiary to buy 15% stake in Western Digital, which a month later agreed to buy SanDisk.
"Western Digital said it remained committed to buying SanDisk and invoked an alternative deal structure it had negotiated in the event that Unisplendor's transaction fell through. It would offer SanDisk less cash and a larger proportion of stock, and would require approval by Western Digital shareholders.
"Unisplendor had a big incentive to walk away, people familiar with the matter said. Its deal would have required it to pay $92.50 for each Western Digital share. The stock closed Monday [Feb 22, before Unisplendor's announcement] at $46.10, roughjly falf the price Unisplendor would have been compelled to pay, and on Tuesday dropped to $42.77.
"Unisplendor's decision came a day after Alken Assessment Management Ltd, a top shareholder in Western Digital, had urged the disk-drive maker to walk away from its deal with SanDisk, saying the price tag was too expensive.
"With the unraveling of Unisplendor's investment, Western Digital is set to pay [$1.8 billion to SanDisk to acquire the latter]
"Besides acquiring a minority stake in Western Digital, the Chinese investors would have been entitled to an observer on that company's board. The terms fall within typical standards for a review, said Mario Mancuso, a former CFIUS official and partner at law firm Kirkland & Ellis LLP in Washington.
My comment:
(a) It is 2:30 PM, and WSJ has not posted the report online. The publisher occasionally posts content late in the day for nonsubscribers. But lately the publisher has locked most of its content behind pay wall.
(b) This report is not found in cn.wsj.com, either.
(c) There is no need to read the rest.