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Monday, March 7, 2011

Western Digital's $4.3 billion Hitachi deal creates giant, (NYSE: WDC), (NASDAQ: AAPL), (NYSE: HIT)

Western Digital Corp's (WDC.N) deal to pay $4.3 billion for Hitachi Ltd's (6501.T) hard disk drive business will arrest a margin-slicing price war and create a global leader with the resources to develop costly next-generation storage technology. The largest tech deal to be struck this year caps years of consolidation for a beleaguered industry that has battled persistent sales growth declines, and now faces a longer-term threat from wireless devices like Apple's (AAPL.O) iPad. Investors pushed Western Digital's stock 16 percent higher and Hitachi's U.S.-listed stock (HIT.N) up 5 percent.

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