: Western Digital stock rockets after Elliott Management calls for a split of the business #FinanceUSA #StockMarketNEWS Shares of Western Digital Corp. were surging 10% in premarket trading Tuesday
@stockMarketNEWS 17 Days ago
Western Digital stock rockets after Elliott Management calls for a split of the business #FinanceUSA #StockMarketNEWS
Shares of Western Digital Corp. [S: WDC] were surging 10% in premarket trading Tuesday after Elliott Investment Management called for the company to split its business in two and offered at least billion in capital to help with a separation. Elliott issued a letter to Western Digital's board of directors saying that while the company has "great potential" in both its hard-disk drive and flash businesses, it has "underperformed-operationally, financially and strategically." Elliott's view is that a "full separation" of Western Digital's flash business could help its stock climb to 0 a share by the end of 2023; it closed Monday at .92. The investment company said it was offering at least billion of incremental equity capital for the flash business at an enterprise value of billion to billion, which Western Digital could use to facilitate a spin-off or as equity financing to support a sale or merger. "This investment proposal underscores our conviction on the merits of a separation as well as our belief in the long-term prospects of the Flash business," Elliott said in its letter, while calling for a "full strategic review" of its proposal. Elliott is currently a Western Digital shareholder with a stake of about billion, or over 6% of the company's shares. Western Digital shares have fallen 23% over the past 12 months as the S&P 500 has dipped about 1%.