Hitachi President: Concerned About Further Delays In Sale Of Hard Disk Drive Operations To Western Digital
December 19 2011 - 10:08PM
Dow Jones News
The president of Hitachi Ltd. (6501.TO) said Tuesday he is "very
concerned" about possible further delays in the planned sale of the
hard disk drive business to Western Digital Corp. (WDC) beyond
March, as the U.S. company is still seeking regulatory approval
from various international authorities.
"Authorities continue to examine the deal, and it's not clear
what China will say," Hitachi President Hiroaki Nakanishi told
reporters at company headquarters in Tokyo.
The Japanese electronics maker said in March it had agreed to
sell its hard disk drive business to Western Digital for $4.3
billion, planning to complete the deal by the end of this year. But
earlier this month Hitachi said it now expected the sale to be
finalized by March 2012.
A delay beyond March would have a significant impact on
Hitachi's earnings forecasts and cash flow for the current fiscal
year, which currently factor in the expected effects of the
sale.
Hitachi, one of Japan's biggest companies, had Y9.316 trillion
in revenue in the last fiscal year ended in March. It has been
restructuring by distancing itself from volatile businesses such as
electronic devices and focusing more on technology services and
infrastructure projects that target corporate and government
clients rather than consumers.
-By Juro Osawa, Dow Jones Newswires; 813 6269 2794;
juro.osawa@dowjones.com
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