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Western Digital Shares Surge on Possible Private Equity Buy of Rival Seagate

Shares of Lake Forest-based Western Digital Corp. surged Friday, a day after key rival Seagate Techology PLC said it had received interest in a buyout offer to take the company private.

Western Digital’s shares were up about 8% in afternoon New York trading on a market value of $7.3 billion.

Seagate’s shares were up 20% to a market value of $7.2 billion.

Western Digital is the top maker of disk drives for computers and consumer electronics, followed closely by Northern California’s Seagate.

The surge in drive maker stocks started with Thursday afterhours trading on word Seagate has received interest in a buyout.

Seagate didn’t indicate where the interest is coming from.

Reports speculate that private equity firms TPG Capital and Kohlberg Kravis Roberts have approached the company.

There’s no buyout speculation for Western Digital, though its shares appear to be moving along with Seagate’s on potential investor demand for drive makers.

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