* Seagate has market value of around $7 bln
* Company has long-term debt of $2.5 bln
* Private equity interest increasing -- sources
* Shares close up 22 pct
NEW YORK, Oct 15 Interest in a potential buyout
of hard drive maker Seagate Technology (STX.O) is growing, with
private equity firms Kohlberg Kravis Roberts & Co (KKR.N) and
Bain Capital potentially interested in the company, two sources
familiar with the situation said.
Hard drive maker Seagate said on Thursday it is in talks to
be taken private by an undisclosed buyer and two sources
familiar with the matter said those talks involve buyout firm
TPG Capital LP [TPG.UL]. For more details [ID:nN14153918]
TPG and rival private equity firm Silver Lake Partners
[SILAK.UL] previously held early-stage discussions about buying
the hard-drive manufacturer, a source familiar with the matter
told Reuters in September.
The talks were early-stage and faltered that source said at
Silver Lake, however, is not involved anymore, a source
familiar with the situation said on Thursday. It was unclear
whether the interested private equity firms have teamed up.
Seagate Technology has a market capitalization of about $7
billion and has long-term debt of around $2.5 billion. The
company's income from operations for the three months to July 2
was $380 million.
The company's shares surged 22 percent on Friday to
The sources declined to be named because the talks are
The private equity firms declined comment.
(Reporting by Megan Davies; editing by Andre Grenon)