Seagate Held Talks With TPG, Siliver On Buyout; No Deal Likely

Seagate (STX) recently held talks with private equity firms TPG and Silver Lake – which took the disk-drive company private once before – about another buyout, Bloomberg reports, while adding that the talks have ended, and aren’t likely to result in a deal. The news service attributes the information to “people with knowledge of the discussions.” The deal that was being discussed reportedly would have valued Seagate at about $7 billion, the story says. (Current market cap is about $5.4 billion.)

The story said the negotiations ended when it became clear that Seagate was not meeting up to financial projections that the two private equity firms had expected. Bankers involved the discussions reportedly included Morgan Stanley, Deutsche Bank and Bank of America.

TPG and Silver Lake bought Seagate in 2000, and then took it public again in 2002.

STX is up 20 cents, or 1.7%, to $11.49.