updated 12:05 am EDT, Thu October 2, 2008
Fujitsu in talks with WD
Fujitsu and Western Digital are allegedly in conversation over the purchase of Fujitsu's hard drive business sector, an inside source tells Reuters. Despite fierce denial on Fujitsu's part, the news sent the company's share price shooting up 3.3 percent on the Nikkei market to ¥620 (~$5.80), since Fujitsu's hard drive unit is currently losing money. The sale talks come as Fujitsu faces increased competition from Seagate and others, as well as plummeting storage prices.
The alleged deal is said to sit between ¥70- to ¥100 billion (~$660- to ~$945 million), and will leave Fujitsu to concentrate on IT consulting.
"There is no truth at this time to the Nikkei report concerning our hard drive business," Fujitsu said in a statement.