Short term play on Seagate

Investors can take a look at Seagate. This company now faces a potential take-over by Chinese firms, see story below. China now has billions in foreign reserves, and led by ambitious national government, Chinese companies are looking at buying American technology. Chinese products are still inferior in technology and business management. In order to gain the much needed skills, they are looking to buy up companies that posses them. Although U.S. Congress may repeat it's unreasonable blocking of the deal, one that involved Unocal two years ago, they are unlikely to block this Seagate bid. Seagate technology does not involve national security factors, such as a U.S. oil company or airline would. It is more closely resembles the IBM transaction. Therefore, investors can buy Seagate stocks now, and await a tender off/ take over bid from Chinese company, making a profit.


New York Times reported on the 25th, that leading global supplier Seagate Technology chief executive said Watkins, a Chinese IT companies have expressed interest to acquire the company. This raises concerns the United States government officials the transfer of high technology to China for national security risk, in this case also reminds us three years ago, the Chinese Lenovo's acquisition of IBM PC sector caused by economic competitiveness and national security of the controversial precedent. The New York Times reported on the 25th, Watkins did not identify the Chinese company is looking to buy Seagate Technology, but stressed that the possibility of acquisitions in a number of government departments, bringing down the internal alarm. He said : "The United States government began disturbed." The New York Times said that the recent positive developments in the Chinese military and business - and consumer-oriented advanced technology, more and more nervous. American officials noted that although the hard drive is not included in the technology export control list, but if the industry attempts to purchase a hard drive, remain subject to federal safety review.