Shares of disk drive maker Western Digital Corp. soared about 12% Friday, sparked by a familiar theme: takeover speculation.
Andrew Neff, an analyst with Bear Stearns & Co., said the drive maker is the “next logical acquisition target,” following the acquisition of Maxtor Corp. of Milpitas by market leader Scotts Valley-based Seagate Technology LLC.
Western Digital could use the deeper pockets of a larger company to help it thrive in a market where it’s now a distant No. 2 to Seagate.
The company has been the subject of its share of takeover speculation, given the drive industry’s focus on mass production and low prices.
In April, Western Digital’s shares shot up on speculation that Samsung Electronics Co. could be interested in buying the company. Some observers think Asian electronics makers could be in the market to boost their businesses in the U.S.
Western Digital counts a market value of about $4.7 billion.
